SINGAPORE (May 12): BBR Holdings swung back into the black in 1Q, reporting earnings of $5.4 million compared to a net loss of $1.7 million, mainly from improved operating performance and share of associates’ profits.
The group recorded a 59.7% fall in revenue to $33.1 million. This was mainly due to lower revenue from the General Construction Segment but was partially offset by revenue from sale of one condominium unit at Bliss@Kovan under the Property Development Segment.
Gross profit rose to $5.4 million, mainly due to improved performance from Pre-finished Pre-fabricated Volumetric Construction (PPVC) projects under the Specialised Engineering Segment, but partially offset by lower profits from General Construction due to a decrease in revenue. Overall gross margin improved to 16.3% from 5.9% as a result of difference in project mix.
Share of results of associates rose to $5.8 million compared to $79,000, attributable to the group’s 35% equity interest in Lakehomes, the developer for LakeLife Executive Condominium in Jurong Lake district.
BBR says the industry outlook remains challenging in the next 12 months with increasing competition and anticipated increase in labour cost due to short supply of foreign workers.
Shares of BBR closed at 22 cents.
