BT : Property division helps boost Q2 profit 13% for Boustead‏

Business Times - 13 Nov 2009


Property division helps boost Q2 profit 13% for Boustead

By VEN SREENIVASAN

CONTINUED strong performance by its real estate division allowed Boustead Singapore to lift second- quarter earnings by a respectable 13 per cent in the face of challenging business conditions and unfavourable forex movement.

The engineering and infrastructure specialist posted a profit of $10.8 million for the quarter ended Sept 30, compared to $9.5 million a year ago. This was achieved despite a 12.7 per cent fall in revenue to $114.3 million.

The results translated into first-half net earnings of $20.2 million, which are 33.4 per cent up from last year's $15.2 million. Revenue came to $233.2 million, up 10.8 per cent from a year ago.

The group had net cash of $163.4 million and an order book in excess of $450 million as at end-September.

It declared an interim dividend of 1.5 cents.

The star performer during the quarter remained the real estate solutions division, which achieved revenue of $61.8 million, 7.7 per cent up year-on-year. This division's strong performance was underpinned by the steady progress of the industrial real estate solutions business, as well as improving revenue from the new township business in Libya, where Boustead is constructing a 1,164-villa township. To date, about one-third of the villas have been completed. The unit expects to continue clinching numerous projects in Singapore and around the world.

Commenting on the results, CEO and chairman Wong Fong Fui said that the first-half financial results were not unexpected given the generally challenging operating environment.

'Still, it was pleasing to see net profit growth of 33.4 per cent for the first half. Nonetheless, it is highly unlikely that we will be able to exceed our full-year record performance in FY2009, given that it is improbable that we will be able to unlock the value of any industrial leasehold facilities in FY2010.'