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SINGAPORE (Sept 25): Structural steel specialist TTJ Holdings posts a 58% decline in earnings to $10.9 million for the full year ended July, from $25.8 million a year ago.

This was on the back of a 39% drop in revenue to $82.9 million in FY2017, from $136.6 million a year ago.

The decline was mainly due to the decrease in both structural steel and dormitory businesses.

Revenue from the group’s structural steel business fell 35% to $76.2 million in FY2017, mainly due to less work completed for on-going projects as well as fewer large-scale projects of higher contract value compared to FY2016.

Revenue from its dormitory business decreased by 67% to $6.0 million in FY2017, mainly due to the expiry of tenure for the dormitory at Terusan Lodge I in January.

Administrative expenses were 10% lower at $8.5 million in FY2017, mainly due to a decrease in staff-related cost.

As at end-July, cash and cash equivalents stood at $82.2 million.

Going forward, the group says it expects the operating environment to be increasingly challenging due to economic uncertainties and generally weaker sentiments in Singapore, but adds that it will continue to actively pursue projects and also explore new areas of business.

“It has not been an easy year for TTJ as the structural steel industry has turned increasingly competitive,” says TTJ’s chairman and managing director, Teo Hock Chwee.

“Nevertheless we went all out to pursue structural steel jobs which has led to an order book build-up to $152 million to-date. We hope to keep this momentum going on the back of relatively well-supported public infrastructure construction demand in Singapore,” he adds.

TTJ’s projects include the provision of structural steel works for Funan DigitaLife Mall, the Methionine Plant in Jurong Island, East Coast Integrated Depot; and civil defence doors for MRT Stations along the Thomson Line. The projects are expected to be substantially completed by FY2021.

TTJ has recommended a first and final cash dividend of 0.7 cent per share for FY2017. This is 58.8% lower than the first and final cash dividend of 1.7 cents per share declared a year ago.

Shares in TTJ last closed at 42 cents on Sept 22.