SINGAPORE (May 18): Boustead Projects reported a 19% fall in FY18 earnings to $29.2 million which came on the back of a 12% fall in revenue to $201.3 million.

For 4Q18, Boustead Projects registered quarterly revenue that was 50% higher year-on-year at $57.6 million, due to higher revenue contributions from the design-and-build business.

Design-and-build revenue was 64% higher year-on-year at $49.9 million, as there was greater revenue converted from contracts secured during FY18.

Leasing revenue was 4% lower year-on-year at $7.8 million, mainly due to the lease expiry of 85 Tuas South Avenue 1 in January 2018 and lack of contribution from 36 Tuas Road due to AusGroup’s early lease termination in 4Q17, partially offset by contributions from new leases, as well as development management fees from the Boustead Development Partnership.

Despite the higher revenue for 4Q18, quarterly total profit was 59% lower year-on-year at $5.8 million, mainly due to an absence of non-recurring other gains of $14.6 million, recorded in 4Q17.

These other gains were from compensation for AusGroup’s early lease termination and the TripleOne Somerset sale. After adjusting for other gains/losses and expenses associated with the AusGroup and TripleOne Somerset transactions, quarterly total profit would be 71% higher year-on-year, supported by higher quarterly gross profit.

This resulted in 4Q18 earnings of $5.8 million, 59% lower compared to a year ago.

The board has proposed a final dividend of 1.5 cents.  

Boustead Projects’ current order book backlog stands at $218 million.

In its outlook, the group says it expects to deliver a healthy level of profit in FY19 and will continue to pursue the longer term strategy of expanding and growing its design-and-build business regionally, and increasing its portfolio of income generating properties.

Shares in Boustead Projects closed at 81 cents on Friday.