Revenue for Boustead Singapore fall 27% in 1HFY23, but earnings climb 6%

Despite the fall in revenue, the company has declared a dividend of 1.5 cents per share.

Boustead Singapore has reported a 27% fall in revenue for its 1HFY2023 ended Sept 30, but total profit and net profit were 8% and 6% higher year-on-year at $27.8 million and $22.6 million respectively.

This was mainly due to increased interest income and significant currency exchange gains, and reduced overheads and income tax expense.

However, in its release,  the company says after adjusting for other gains and losses, impairments and the Jobs Support Scheme, net of non-controlling interests, net profit for 1HFY2023 would have been 28% lower year-on-year.

Boustead’s energy engineering division’s revenue was 44% lower y-o-y at $38.3 million, due to the division’s significantly lower order backlog carried forward at the end of FY2022 as compared to FY2021.

The real estate division, also known as Boustead Projects, recorded revenue 34% lower y-o-y at $117.7 million, mainly due to lower revenue contributions from a leaner order backlog of engineering & construction projects carried forward at the end of FY2022.

Its healthcare division’s revenue was 21% lower year-on-year at $5.1 million, as it continued to be impacted by the after-effects of the pandemic.

This has resulted in deferred demand for rehabilitative care and sports science solutions across South East Asia.

In contrast to the divisions above, Boustead geospatial division’s revenue remained stable year-on-year at $85.5 million, despite facing currency headwinds. The division saw firm demand for geospatial technology and smart mapping capabilities across the region.

Boustead's current order backlog is at $558 million, made up of unrecognised project revenue remaining at the end of 1HFY2023 plus the total value of new orders secured since then.

Of this figure, $106 million is under the energy engineering division and $452 million is under the real estate division.

Outside of the order backlog, the geospatial division maintained a healthy $115 million in deferred services backlog at the end of 1HFY2023.

In light of the results, Boustead has declared an interim dividend of 1.5 cents per share.

Shares of Boustead Singapore closed at 79 cents, up 0.5 cent or 0.64% compared to its previous close.