Boustead Singapore hits second highest profits in its history

It has been a stellar year.

According to CIMB, Boustead Singapore's reported profit of S$70.7m was the second highest in history. The stellar results were only second to the S$81.4m in FY13.

After adjusting for non-recurring items, the group’s FY14 core PATMI was 5.5% higher than FY13. Weakness in real estate offset by stronger energy division.

Here's more from CIMB:

PBT for its real estate division fell by 36% to S$39.4m (FY13: S$61.2m) due to slower contract wins. PBT for its energy division expanded by 81% to S$24.8m (FY13: S$13.7m), driven by a strong order book and expanding margins.

PBT for its geo-spatial division was down 15% to S$25.2m (FY13: S$29.7m). A healthy order book of S$380m underpins FY15 outlook.

We expect strong demand for its energy engineering products from the continued O&G investment given the robust oil price at above US$100/barrel.

The real estate division is likely to remain lacklustre due to the downcycle of industrial property investment as well as squeezed margins from rising labour costs.

The geo-spatial division is expected to resume high single-digit growth, driven by the recovering Australian demand and increasing utilisation of Geo-spatial technology in ASEAN region. Overall, we expect a flat to mild growth in FY15.