SINGAPORE (Aug 24): ISOTeam reported earnings of $6.4 million for the FY17 ended June, down 30.1% compared to $9.2 million a year ago.
Revenue came in at $82.9 million, down 11.9% from $94.1 million.
The Repairs and Redecoration (R&R) and Addition and Alteration (A&A) specialist says FY17 performance was affected by a reduction in the number of projects available in the R&R industry. R&R full year revenue fell 48.1% to $20.9 million.
However this was partially offset by the continued healthy expansion of its A&A and Coatings and Painting (C&P) segments, which collectively grew 29.2% year-on-year in FY17.
A&A revenue rose 32.8% to $32.4 million while C&P revenue rose 21.8% to $14.3 million.
In addition, the group was impacted by one-off charges comprising amortisation of intangible assets and allowance for doubtful receivables, mainly due to a customer under receivership that amounted to $1.6 million and $1.4 million respectively.
Anthony Koh, Executive Director and CEO, says, “In January 2017, the Group added mechanical and electrical engineering (M&E) services to its offerings with the acquisition of ISO-Integrated M&E (formerly known as Rong Shun Engineering & Construction), and also secured its first Home Improvement Project from the HDB worth S$17.5 million as well as its largest renewal energy installation project to-date worth $6.3 million.”
In April, the group completed the purchase of its new premises in Changi, which will house its expanded operations including its corporate headquarters and the offices of its subsidiaries. The group expects to centralise its operations at the new HQ by the end of this year.
In May, the group made a $5.0 million investment in Sunseap Group – one of the leading providers of clean energy solutions in Singapore.
Shares in ISOTeam closed at 35 cents on Wednesday.
