SINGAPORE (May 23): Boustead Singapore, the infrastructure-related engineering services and geo-spatial technology group, reported an 18% rise in FY17 earnings to $33.3 million.
Full-year revenue came in 11% lower at $433.8 million. The severely depressed global oil & gas industries continued to adversely impact revenue at the Energy-Related Engineering Division, with revenue declining 25% year-on-year to $96.5 million.
In the face of a challenging and competitive business landscape, the Real Estate Solutions Division also registered revenue of $228.3 million, 11% lower mainly due to lower revenue contributions from both the design-and-build and leasing businesses.
Riding on the back of steady demand in Australia and South East Asia, the Geo-Spatial Technology Division achieved revenue of $108.3 million, 5% higher year-on-year.
Despite significant challenges, all three divisions remained profitable in FY17.
Total profit for FY2017 increased 30% year-on-year to $53.5 million, benefitting from lower income tax expenses as a result of higher taxable profit contributed by lower tax jurisdictions.
The group’s overall gross margin for FY17 improved to 33% compared to 31% in FY16.
The board has proposed a final ordinary dividend of 1.5 cents per share. Together with the interim ordinary dividend of 0.5 cent per share, the total ordinary dividend for FY17 would be 2 cents per share.
Wong Fong Fui, Chairman and Group CEO of Boustead, said, “Despite another year of unfavourable market conditions, we worked hard to achieve commendable results. Even in the face of lower revenue and gross margin pressure, we maintained profitability across our three divisions. Our net profit benefitted from a boost provided by significant non-recurring gains at Boustead Projects.”
Looking ahead, Wong says the group’s healthy balance sheet and fundamentally-sound businesses place us in good stead to weather a prolonged challenging and competitive period.
“We have also restructured many of our businesses to prudently manage our internal costs and supply chain in view of the tough business environment. With $188 million in net cash, $67 million in financial assets and $500 million of available untapped MTN programme financing, we remain in an excellent position to take a disciplined and patient approach to seize on good acquisition and investment opportunities in a timely manner,” adds Wong.
Shares of Boustead Singapore closed 1 cent higher at 88 cents.
