SINGAPORE (May 23): Engineering services and geo-spatial technology group Boustead Singapore saw its earnings fall 18% to $7.5 million for the 4Q ended March, from $9.2 million a year ago.
This brings full-year earnings down 24% to $25.4 million in FY18, compared to $33.3 million a year ago.
The decline was mainly due to the absence of one-off gains.
In FY2017, Boustead recorded sizeable other gains due to a tenant’s early lease termination compensation, and a gain on disposal of an available-for-sale financial asset. The group also saw gains last year from related financial effects that benefitted its separately-listed Real Estate Solutions Division under Boustead Projects.
As a result, other gains fell to $0.2 million in 4Q18, compared to $12.0 million a year ago.
4Q18 revenue rose 28% to $116.7 million, from $91.0 million a year ago.
This was due to higher revenue from all of the group’s three divisions during the quarter, led by a 50% jump in revenue from Boustead’s Real Estate Solutions Division to $57.6 million in 4Q18.
The group’s Energy-Related Engineering Division posted a 24% rise in revenue to $28.2 million, while revenue from its Geo-Spatial Technology Division climbed 5% to $30.7 million.
As at end March, cash and cash equivalents stood at $265.4 million.
Boustead has proposed a final dividend of 2 cents per share for the period.
Together with the interim dividend of 1 cent per share, this brings the total dividend for FY18 to 3 cents per share – 50% higher than the total dividend of 2 cents per share a year ago.
“We achieved healthy core profit growth in FY2018 despite lower revenue, gross margin pressure and the persistence of headwinds across two of our three divisions. On a like-for-like comparative review, core net profit would have come in approximately $4.4 million or 18% higher year-on-year,” says Wong Fong Fui, Boustead’s chairman and group chief executive officer.
“Although uncertainty remains in the macro economic environment as a result of global political events, we are cautiously optimistic about our business prospects, given our healthier order book backlog and a general improvement in the outlook across the sectors that we operate in,” he adds. “We will continue to boost business development efforts and prudently manage costs.”
Shares in Boustead Singapore closed half a cent higher at 78.5 cents on Wednesday.
