Beng Soon Machinery Holdings Limited (Beng Soon Machinery) reported unaudited interim results for the six months ended 30 June 2026, showing a sharp rebound to profitability on the back of stronger demolition project activity in Singapore.
Revenue and Profitability • Revenue reached S$21.91 million, up 31.1% from S$16.74 million in 1H 2025, driven mainly by new demolition contracts and increased proceeds from salvage material disposals.
• Gross profit rose 26.1% year on year to S$5.79 million; gross margin edged slightly lower to 26.4% (1H 2025: 27.2%).
• The Group recorded a net profit attributable to shareholders of S$0.04 million, reversing a S$0.65 million loss in the prior-year period. Net margin was 0.2%.
Cost Structure and Expenses • Cost of sales climbed 32.4% to S$16.12 million, reflecting higher raw material and consumable costs alongside elevated subcontractor charges.
• Administrative expenses increased marginally by 3.8% to S$5.42 million.
• Finance costs were stable at S$0.17 million, while income tax expense rose to S$0.22 million on higher deferred tax provisions.
Balance Sheet and Liquidity • Total assets stood at S$57.42 million as of 30 June 2026, virtually unchanged from year-end 2025.
• Cash and cash equivalents were S$12.39 million, down from S$14.25 million at 31 December 2025, largely due to a special dividend payment and working-capital movements.
• Lease liabilities reached S$13.32 million, resulting in a gearing ratio of 2.4% versus a net cash position at end-2025.
• Equity attributable to shareholders was S$38.19 million, down S$2.43 million after a special dividend of approximately S$2.50 million (HK$0.015 per share) paid during the period. No interim dividend was declared.
Operational Update • Two projects were completed: demolition of a factory building (S$20.17 million cumulative revenue) and disposal of spare parts at a power plant (S$0.11 million).
• Nine projects remained in progress at mid-year, including factory, chemical plant, power plant, residential and infrastructure-related demolitions as well as crane disposal and reinstatement works.
Outlook Management notes sustained construction demand in Singapore, with the Building and Construction Authority projecting 2026 industry demand between S$47 billion and S$53 billion. Beng Soon Machinery will continue to pursue demolition and related contracts aligned with its technical capabilities while maintaining a prudent cost and capital structure.
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