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.

Singaporeans to receive SG Bonus 'hongbao' as budget surplus soars to $9.6 bil

SINGAPORE (Feb 19): All Singaporeans aged 21 and above will receive a one-off “SG Bonus” of $100, $200, or $300, depending on their annual income, Finance Minister Heng Swee Keat announced at his 2018 Budget statement on Monday. The budget statement comes after Singapore's trade-reliant economy in 2017 recorded full-year growth of 3.6% – the highest in three years. According to Heng, the “hongbao” is a way to share some of the year’s budget surplus with the nation. The SG Bonus will cost the government some $700 million. This comes after Singapore's revised FY2017 ....

Top marginal buyer's stamp duty for residential properties raised to 4%

SINGAPORE (Feb 19): In the latest Budget 2018, Finance Minister Heng Swee Keat said that the government will be raising the top marginal buyer's stamp duty (BSD) rates for residential properties to 4% from 3%, and applied on the value of residential property in excess of $1 million. The increased top marginal rate will apply to a portion of residential property value which is more than $1 million. The changes will be applied to all residential properties acquired from tomorrow (Feb 20) onwards. There will be a transitional provision for cases where an Option To Purchase (OTP) will be&....

Singapore delays highly-anticipated GST hike to 9% to between 2021-2025

SINGAPORE (Feb 19): Singapore will raise its good and services tax (GST) by 2 percentage points to 9% sometime between 2021 and 2025, according to Finance Minister Heng Swee Keat in his 2018 Budget statement on Monday. "But I expect that we will need to do so earlier rather than later in the period,” he adds. According to Heng, the exact timing of the tax increase will depend on the state of the economy, how much expenditures grow, and how buoyant existing taxes are. "This GST increase is necessary because even after exploring various options to manage our future expenditures throug....