Boustead posts 76% net profit jump in H1

Revenue dipped 1% despite the pandemic's different effects on each division.

Boustead Singapore reported a 76% jump in H1 net profit to $21.8m for FY2021, on the back of better gross margins, cost-cutting measures, lower financial expenses and grants received from the Jobs Support Scheme (JSS), according to an announcement.

Revenue dipped 1% to $289.7m from $292.1m in H1 FY2020 due to the pandemic’s impact on overall revenue performance despite a high variability of the effect in the performance of each division.

For a comparative review after adjusting for other gains or losses net of non-controlling interests, impairment losses, a one-off legal settlement amount paid by Boustead Projects and receipt of payments from the JSS net of non-controlling interests, the net profit would have been 114% higher YoY

Its $650m current order backlog, or unrecognised project revenue remaining at the end of 1H FY2021 plus the total value of new orders secured since then, remains healthy although lower than the $789 million a year earlier. Furthermore, the geospatial division had $100m in deferred services backlog.

The energy engineering division continued to ride on a healthy order backlog to achieve $109.3m in revenue. On the other hand, the healthcare division posted a 19% drop in YoY at $7million, with the division’s clients’ main attention placed on addressing the pandemic, resulting in a delay in orders.

The board has declared an interim dividend of 1 cent per share, matching the interim dividend declared and paid for the previous year’s comparative period.