Chip Eng Seng Corporation has reported losses of $24.4 million for 1HFY20 ended June 30, versus earnings of $15.2 million in the year-earlier period. 

Revenue in the same period was down 42.5% y-o-y to $290 million, due to lower turnover from its property development, construction and hospitality businesses. 

Due to the government-mandated stoppage of construction work in a bid to curb the spread of Covid-19, Chip Eng Seng’s core construction and property development activities were stymied. “Minimal revenue was recognised,” says the company in its earnings statement.

The bright spot is the company’s education business. During the six months, revenue more than doubled to $11.5 million, thanks to contributions from its Invictus-brand international schools and Excelsior International School acquired last year, as well as higher revenue from its White Lodge preschools.

Nevertheless, the company has won more contracts during 1HFY20. As at June 30, its order book was $1.29 billion, up from $591.2 million as at Dec 31 2019.

Chip Eng Seng shares closed on Aug 3 at 42 cents, down 4.49% for the day and down a third year to date.