Starburst swings out of the red in HY2017 on lower project, production costs

Starburst swings out of the red in HY2017 on lower project, production costs

Stanislaus Jude Chan
11/08/17, 06:28 pm

SINGAPORE (Aug 11): Firearms-training facilities engineering group Starburst Holdings reversed out of the red with earnings of $0.6 million in the 1H17 ended June, from a net loss of $2.1 million a year ago.

This came on the back of a vastly improved gross profit margin, which surged 37.7 percentage points to 45.8% in 1H17 due to better management of project and production costs.

Project and production costs fell 59.8% to $5.4 million in HY2017, in line with a decrease in revenue, and lower sub-contractor and overhead costs.

Revenue fell 32.1% to $10.0 million in HY2017, from $14.8 million a year ago.

As at end June, cash and cash equivalents stood at $8.0 million.

“We are pleased to have delivered our second consecutive quarter of profit, a clear signal that our efforts to control costs have continued to bear fruit,” says Starburst executive chairman Edward Lim Chin Wah.

“Going forward, apart from focusing on higher margin projects, we will also look for opportunities to expand into complementary areas of growth, leveraging on our core competencies,” he adds.

In a filing to SGX on Friday, Starburst notes that its overall revenue may fluctuate due to the nature of its business being largely project based.

“We have seen an encouraging level of enquiries for our firearm training facilities, in line with law enforcement authorities’ response to the threat of extremism globally. We are actively responding to these enquiries and requests for tenders, including engaging in post tender discussions with potential customers,” says Lim.

Shares in Starburst closed 1.5 cents higher at 43 cents on Friday.

Right timing: Awaiting rebound amid accelerated decline

SINGAPORE (June 22): Here are two charts for your technical analysis this week: STI daiiy (3,356) The Straits TImes Index fell almost 70 points in the past five sessions after falling 80 points a week earlier. Down momentum is strong, but short-term indicators are becoming increasingly oversold. Short-term stochastics is at the bottom of its range, and 21-day RSI is at 30, a low level. ADX is at 32, a high level, suggesting that prices are likely to hit an excessively oversold level soon, at around mid-week next week. Volume was elevated on June 22, but once this abates, the index sh....

Noble up 30% on securing trade finance facilities, debt restructuring plan

SINGAPORE (June 22): Debt-laden commodities trader Noble Group said on Friday it had secured US$100 million ($136 million) in trade finance facilities from a group of investors, winning fresh support for a US$3.4 billion debt restructuring plan that is key to its survival. In a regulatory statement, Noble, once Asia's largest commodity trader, said a consortium of investors, which includes perpetual security holders Value Partners and Pinpoint Asset Management, will provide the three-year financing. The consortium, which owns about 5% of Noble stock, has agreed to back the restructuring. ....

Ho Bee to get a recurrent income boost from Ropemaker acquisition: Maybank

SINGAPORE (June 22): Maybank KimEng is raising Ho Bee Land’s FY18-20 EPS by 7-22% after incorporating the developer’s recent acquisition of Ropemaker Place in the UK. See: Ho Bee Land acquires Ropemaker Place in London for $1.16 bil Maybank said the deal puts Ho Bee’s conservative balance sheet to work and should enhance its recurring EBIT by 39%. And at a 7% discount to the vendor’s asking price and with yields at almost 50bps higher than prime office yields in the same locality, the price paid appears reasonable, added Maybank. After snapping up Ropemaker Place, a Grade A of....
High-value jobs, skilled talent in high supply at Iskandar Malaysia

SINGAPORE (June 18): Most companies setting up a division overseas struggle to find the right talent