SINGAPORE (Feb 12): Real estate solutions specialist Boustead Projects saw its earnings fall 15% to $6.8 million for the 3Q19 ended December, from $8.0 million a year ago.

3Q19 revenue jumped 70% to $81.3 million, from $47.9 million a year ago, on the back of higher design-and-build revenue.

Design-and-build revenue for 3Q19 was 85% higher at $73.8 million, with the healthy order book backlog carried forward at the end of FY18 contributing to stronger revenue conversion during the quarter. In particular, the group says there were two sizeable projects that provided significant revenue for 3Q19.

However, gross profit for 3Q19 was only 7% higher at $18.6 million, as cost of sales more than doubled to $62.7 million. Overall gross profit margin fell 13 percentage points to 23% in 3Q19.

Share of loss of an associated company and joint ventures more than doubled to $2.8 million for 3Q19, compared to share of loss of $1.2 million a year ago.

This was mainly due to an increase in the elimination of the BP Group’s share of unrealised construction and project management profits, coupled with the depreciation incurred on the newly completed ALICE @ Mediapolis where leasing is still in progress.

Earnings per share slipped to 2.2 cents for 3Q19, compared to 2.5 cents a year ago.

As at end December, cash and cash equivalents stood at $89.3 million.

Boustead Projects says a record $615 million worth of contracts have been secured since the start of FY19. The current order book backlog stands at $679 million.

“We continued to deliver a healthy set of results for 3Q19 while achieving significant milestone contract awards on several business development fronts,” says Thomas Chu, managing director of Boustead Projects.

“We have invested substantially in advanced capabilities with Industry 4.0 transformation standards and market-leading methodologies,” he adds. “These initiatives are visibly advancing our real estate partnership credentials with industry leaders and furthering our competitive edge.”

Shares in Boustead Projects closed half a cent lower at 92.5 cents on Tuesday.