SINGAPORE (Feb 13): ISOTeam posted a 4.8% decline in earnings of $4.1 million for HY17, from $4.3 million a year ago.

The lower earnings was mainly due to a reduction of claimable tax relief in the six months ended Dec 31, 2016, as well as allowance for doubtful receivables of $0.7 million pertaining to a customer that went into liquidation.

Without these doubtful receivables, ISOTeam says in a SGX filing on Monday that the group’s operational net profit in HY17 would have been 8.9% higher.

ISOTeam also saw an increase in overall expenses in HY17 as a result of higher overheads and staff costs arising from the acquisition of a new subsidiary, ISOTeam TMG, as well as the incorporation of joint venture companies in Myanmar and Malaysia.

General and administrative expenses increased by 38.8% to $7.5 million in HY17.

Revenue was marginally higher at $44.8 million for HY17, a 0.1% improvement from $44.7 million registered a year ago.

Revenue from the group’s repairs and redecoration (R&R) division fell 55.5% to $10.7 million in HY17, from $24.0 million a year ago, due to lower income revenue recognition.

This was mitigated by improved revenue contribution from its addition and alteration (A&A) segment which grew 77.6% to $17.3 million, its coating and painting (C&P) segment which grew 67.8% to $8.2 million, and its other business segment which grew 41.3% to $8.6 million.

ISOTeam's gross profit increased by 15.8% to $12.6 million in HY17, from $10.9 million a year ago, mainly due to higher margin contributed by A&A and C&P works.

Overall gross profit margin increased to 28.2%, from 24.4% a year ago.

Cash and cash equivalents stood at $28.5 million as at Dec 31, 2016.

Looking ahead, ISOTeam says it “remains optimistic of clinching new projects as the Singapore government continues to invest in the renewal and rejuvenation of older estates”.

It adds that its expanded capabilities have also opened the doors to an increasing number of private sector projects.

ISOTeam closed 1 cent higher at 42 cents on Monday.

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