SINGAPORE (Aug 28): ISOTeam, the building maintenance and housing estate upgrading company, posted 4Q19 ended June earnings of $2.9 million, reversing from a loss of $1.86 million a year ago in 4Q18.
This brings FY19 earnings to $6.8 million, a 14-fold increase from $0.5 million in FY18.
Earnings per share for the year came in at 2.37 cents, up from 0.17 cents the previous year.
FY19 revenue increased 63% to $136.6 million from $83.8 million last year due to a significant increase in revenue contributions across all business segments.
Breaking down the topline, Addition & Alteration delivered an 86.8% surge in revenue, while the Repairs & Redecoration, Coating & Painting and Others segments saw revenue increase by 37.9%, 45.0% and 52.6% respectively.
Cost of sales for the year increased 62.3% to $115.0 million from $70.8 million a year ago.
Correspondingly, gross profit increased 66.9% to $21.6 million.
Notably, finance costs doubled to $1.2 million in FY19 from $0.6 million in FY18 due to an increase in borrowings to finance the purchase of the office building and working capital needs for sizable projects.
Other income for the year increased 67.2% to $3.1 million due primarily to fair value gain on investment, but offset by lesser government grants received.
There were also tax expenses of $1 million versus a tax credit of $0.5 million a year ago. This was due to the absence of tax incentives which came on the back of the back of higher profits.
As at end June, cash and cash equivalents stood at $5.2 million.
The group has proposed a final cash dividend of 0.42 cents per share.
In its outlook statement, ISOTeam noted that the business environment in Singapore remains challenging with continuous pressure on contract value and stiff competition for new projects to be secured, and continues to look for growth opportunities abroad to diversify its geographical base and revenue streams.
As at 12.04pm, shares in ISOTeam are trading flat at 23 cents.
