SINGAPORE (Sept 20): Sysma Holdings announced FY17 earnings surged more than fivefold to $8.3 million compared to $1.7 million the previous year on lower cost of sales.
For the fiscal year ended July, the group reported a 23% drop in FY17 revenue to $97.2 million from $126.2 million in FY16. This was mainly due to lower contribution from the group’s property development projects, including 28 RC Suite, 8M Residence and Charlton 18, aggregating to $32 million in FY17 as the properties have been substantially sold.
However, the decrease in development revenue was offset by an increase in revenue contribution from construction projects including additions and alterations projects aggregating $65.2 million.
Cost of sales also fell 32.4% to $79.3 million from $117.3 million last year, mainly due to a decrease in cost of sales from property development projects in line with lower sales from the segment.
Hence, gross profit doubled to $17.9 million in FY17, compared to $8.94 million in FY16.
A final cash dividend of 0.5 cent has been recommended.
In its outlook, Sysma says it will continue to actively market the remaining units in its three completed property development projects that have received TOP in an effort to expand its property development business portfolio.
Meanwhile, the group will explore local and overseas property projects with suitable partners and strategic investors.
Shares in Sysma closed at 15 cents on Wednesday.
