Boustead H1 profit down 10% at S$31.5 million despite revenue increase
Company attributes drop in earnings to lower gross profit margin and higher effective income tax rate
[SINGAPORE] Engineering and technology group Boustead Singapore’s net profit for its first half ended Sep 30 dropped 10 per cent to S$31.5 million from the year-ago period.
This came despite revenue rising 38 per cent to S$406.6 million from S$294 million, said the group on Tuesday (Nov 10) as contributions from the real estate solutions, geospatial and energy engineering divisions increased.
The company attributed the drop in earnings to a lower gross profit margin and higher effective income tax rate.
Also, a dilution of shareholdings in UIB Holdings, an associate of subsidiary Boustead Projects, resulted in a reversal of share of net asset value amounting to S$8.4 million.
Earnings per share for H1 stood at S$0.062, compared with S$0.071 in the previous corresponding period.
For a comparative review, after adjusting for other gains/losses, impairments and other exceptional adjustments, all net of non-controlling interests, net profit for H1 FY2027 would have been 41 per cent higher year on year.
Wong Fong Fui, chairman and group CEO of Boustead, said that the group “had to navigate an uneven and complex global operating environment”.
The group noted that its engineering order backlog currently stands at about S$720 million, of which S$107 million is under the energy engineering division and S$613 million is under the real estate solutions division.
The board has declared an interim cash dividend of S$0.02 per share, which is S$0.005 higher than that paid in the year earlier.
SEE ALSO
Wong said: “With the establishment of UI Boustead Real Estate Investment Trust (Reit), Boustead Projects was able to extend its existing relationship with a client to develop a third aerospace facility for them in partnership with the Reit.”
Boustead Projects is aiming to derive a more stable 25 to 33 per cent of its engineering and construction revenue from overseas markets over the next five years, as it steps up expansion in Malaysia and Vietnam.
Looking ahead, the group will keep a watchful eye on evolving trade policies and rising interest rates, he added.
Shares of Boustead ended trading on Tuesday flat at S$1.62.
