SINGAPORE (Nov 10): ISOTeam, the repairs, maintenance and estate upgrading service provider, has posted earnings of $1.5 million for the first quarter ended Sept, up 54.6% from its earnings of $1 million in 1Q17 on higher revenue.
Group revenue for 1Q18 grew 20.9% to $25.1 million from $20.8 million previously on higher contributions from its Repairs & Redecoration (R&R), Addition & Alteration (A&A), and Others business segments, offset in part by lower contributions from Coating & Painting (C&P).
However, gross profit fell 5% to $4.4 million from $4.7 million in the previous year due to lower margin contributed by R&R and Others business segments over the quarter.
General and administrative expenses fell 12.9% to $2.7 million from $3 million previously due to lower staff-related expenses.
As at Oct 27, the group’s order book stood at $87.2 million, which it expects to progressively deliver over the next two years.
ISOTeam says it believes the group is well-positioned to tap into opportunities in the industries it operates in given its multidisciplinary capabilities in the built environment, which is supported by its proven track record in public sector projects and growing market share in private sector projects.
Looking ahead, it sees revenue to be mainly driven by awarded projects from its R&R and A&A segments as the Singapore government continues to invest in the renewal and rejuvenation of older estates through schemes such as the Estate Upgrading Programme and Home Improvement Programme.
The group expects market conditions in the next 12 months to remain challenging, but nevertheless believes its competitive advantages will put it in a strong position.
Shares in ISOTeam closed flat at 34 cents on Friday.
