SINGAPORE (May 7): Soilbuild Construction Group has reported a net loss of $0.9 million for the 1Q ended March, reversing into the red from its $0.2 million earnings in 1Q18 due to lower gross profit margin and higher expenses.
The group nonetheless reported topline growth with a 20% revenue increase to $46.8 million from $39 million previously, boosted by newly-secured projects over the past two years.
Major revenue contributions for the quarter came from the 68 Residence and Rosehill Residence projects, both residential developments in Yangon – as well as two Kallang Way projects at the Geylang Planning Area and the Bedok Food City project in Singapore.
Gross profit margin however dipped to 5.2% from 6.9% a year ago.
Notably, Soilbuild booked 38.7% higher administrative expenses of $2.1 million in the latest quarter due to higher property tax, utilities charges, and other administrative expenses mainly due to additional property tax assessed on the Integrated Construction and Precast Hub (ICPH) following its completion.
Finance expenses grew by 546.7% to $0.4 million from just $60,000 a year ago due to higher borrowings.
Other expenses spiked 90.6% on-year to $1.3 million from $0.7 million previously due to an increase in depreciation on property, plant and machinery – particularly property, plant and equipment acquired or completed during 2H18, including ICPH.
In its outlook, the group notes an overall recovery for the construction sector, supported by improved private sector construction activities, and says it will continue to focus in tendering for more new projects while executing strategies top secure more precast supply.
Shares in Soilbuild Construction closed flat at 8.1 cents on Tuesday.
