Boustead Singapore has reported earnings of $91.3 million for the 2HFY2021 ended March, 394% higher than earnings of $18.5 million in the same year before.
This brings earnings for the FY2021 to $113.1 million, 266% higher than earnings of $30.9 million in the FY2020.
The group’s full-year earnings mark a record after surpassing $100 million for the first time since its listing.
Earnings per share (EPS) for the 2HFY2021 and FY2021 stood at 18.8 cents and 23.3 cents respectively, from 3.7 cents and 6.3 cents in the year before.
Revenue for the 2HFY2021 fell 9% y-o-y to $396 million, mainly dragged by the revenue performance of the group’s Real Estate Division (Boustead Projects), albeit offset by slightly positive revenue performances from the Energy Engineering and Geospatial Divisions.
Despite the decline in revenue, the group reported higher earnings due to better profitability across the Real Estate Division (Boustead Projects), Energy Engineering Division and Geospatial Division, especially from Boustead Projects’ successful launch of Boustead Industrial Fund (BIF).
The BIF value unlocking transaction one-off gain amounted to $134.8 million.
SEE:Boustead Singapore set for another good year: CGS-CIMB
Overall revenue for the FY2021 stood 6% lower y-o-y at $685.7 million mainly due to the same reasons as the 2HFY2021.
Total profit after tax but before non-controlling interests and net profit for the FY2021 surged 302% y-o-y to a record $178.9 million.
On a like-for-like basis, after adjusting for other gains/losses net of non-controlling interests, as well as one-off net gain from the sale of the water business, impairment losses, one-off legal settlements by Boustead Projects and payouts received from the government, the 2HFY2021 would have seen net profit decline by 14% y-o-y.
Similarly, net profit for the FY2021 on a like-for-like basis would have been 23% higher y-o-y.
Overall gross profit for the FY2021 increased 4% y-o-y to $173.6 million with overall gross margin increasing to 25% from 23% in FY2020.
Despite the growth in gross margin, Boustead Singapore faced margin pressures after suffering at least four months of delay per Singapore project, compounded by pandemic-related costs and a lower quantum of cost savings from previously completed projects.
Other income for FY2021 fell 26% y-o-y to $4.8 million mainly due to lower interest income.
Other gains of FY2021 of $127.7 million were mainly due to the BIF value unlocking gain.
In light of the BIF value unlocking gain along with its improved profitability, the board has proposed a final ordinary dividend of 3 cents per share and a special dividend of 4 cents per share for the 2HFY2021, bringing the total dividend for the FY2021 to a record 8 cents per share.
As at March 31, cash and cash equivalents stood at $479.8 million.
“We resiliently weathered a challenging global landscape in FY2021, breaking several records along the way including revenue records at our Energy Engineering Division and Geospatial Division, and profit records for the Boustead Group, Real Estate Division and Geospatial Division. With astute leadership, hard work behind the scenes and some good fortune, our divisions entered FY2021 with sizeable order backlogs that helped to generate reasonable levels of revenue,” says Wong Fong Fui, chairman and group CEO of Boustead.
For more stories about where the money flows, click here for our Capital section
“While facing the most challenging period in our history at Boustead Projects, the team successfully launched the Boustead Industrial Fund, our maiden property trust which has helped to transform Boustead Projects’ business model and integrate all parts of the industrial real estate value chain. The value unlocked by Boustead Industrial Fund was highly anticipated by shareholders at both Boustead Singapore and Boustead Projects but came at a time when most would have expected further delays, a strong indication of the quality of the team. Acknowledgement also should go to our teams at the Energy Engineering Division, Geospatial Division and Boustead Projects for credible performances under difficult conditions,” he adds.
Wong further added that the group expects to remain profitable for the FY2022 despite entering the year with a “moderately healthy but much lower order backlog” on the back of the uncertainties brought about by the Covid-19 pandemic.
Shares in Boustead Singapore closed 5 cents lower or 4.4% down at $1.08 on May 27.
