BBR Holdings (S) (KJ5) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 22.0% YoY to S$289.5m; profit attributable to equity holders increased 231.4% to S$21.1m and EPS rose to 6.55 cents.

• Stronger operating cash generation, reduced net debt-to-equity and the accommodation acquisition supported diversification and a stronger financial position.

Financial highlights

• Revenue increased 22.0% YoY to S$289.5m; gross profit rose 7.2% to S$39.2m, while gross margin declined to 13.5% from 15.4%.

• Profit before tax rose to S$22.7m from S$10.9m; profit after tax was S$19.9m versus S$7.9m, and attributable profit was S$21.1m versus S$6.4m.

• Other income of S$27.5m included a S$19.8m provisional bargain-purchase gain and S$7.0m gain on disposal; these non-recurring items boosted reported earnings.

• Other operating costs increased to S$33.6m, including S$15.2m of provisions for losses on financial assets, versus a S$0.6m write-back in FY2023.

• Finance costs fell 18.3% to S$6.1m; net cash from operating activities was S$53.1m and cash and cash equivalents ended at S$76.4m.

Outlook and guidance

• Construction order book was S$259m at 31 Dec 2024, down 41.0% from S$439m a year earlier.

• Strategy prioritises cost discipline, competitive tenders and partnerships; The LINQ’s 53-unit retail podium is being marketed for lease.

• Management plans disciplined landbank replenishment and continued exploration of accommodation opportunities; the dormitory business provides recurring rental income.

• Singapore construction demand is forecast at S$35bn–S$39bn for 2025 and S$39bn–S$46bn annually for 2026–2029.