Boustead Singapore profit attributable to owners sinks 41% to S$9m

Non-recurring expenses seriously hurt bottom line.

Boustead Singapore has reported profit attributable to owners of S$9.0 million for 2Q FY2014 or 41% below 2Q FY2013, and also 3% lower than 1H FY2014.

But "after adjusting for non-recurring items totalling a net amount of S$10.1 million in 2Q FY2013, the profit attributable to owners of the company for 2Q FY2014 would have increased by 75% over that of 2Q FY2013 and by 54% for 1H FY2014," noted Boustead Singapore.

Company revenue of S$113.3 million for 2Q FY2014 was up 1% from 2Q FY2013, while revenue of S$242.0 million for 1H FY2014 was 7% higher than 1H FY2013.

The Board of Directors declared an interim cash dividend of 2 cents per share, matching that paid for 2Q FY2013.

The Group’s order book backlog currently stands at S$445 million, having secured over S$300 million in new orders to date in FY2014, surpassing total value of orders secured for the whole of FY2013.

The Group’s net cash position increased to S$219.7 million at the end of 1H FY2014.

Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, "Our strategy to expand the industrial leasehold portfolio is yielding positive results, as well as moving us further down the path to unlocking its value. We secured four design-build-and-lease deals and completed the acquisition of one property, adding 60,000 sqm to our portfolio and increasing our future recurring income."

"We also entered Iskandar Malaysia through a joint venture that owns almost 120,000 sqm of industrial land in the Southern Industrial and Logistics Clusters, Nusajaya. This land bank in a highly promising area has enabled Boustead Projects to make good progress in its overseas expansion. The recent developments are forming a strong platform in the future."

Given all this, Boustead Singapore expects profits in FY2014 to remain stable but will not match the record level achieved in FY2013.