Boustead Singapore (F9D) H1 2024 earnings summary

Executive summary

• 1H FY2024 revenue rose 49% YoY to S$367.9m and net profit attributable to equity holders increased 19% to S$26.9m, led by Energy Engineering, Real Estate and Geospatial.

• Adjusted net profit was S$25.8m, up 89% YoY.

• Satisfactory FY2024 results were expected, barring unforeseen circumstances and disruptions.

Financial highlights

• Gross profit rose 42% YoY to S$105.3m; PBT increased 19% to S$43.9m and total profit after tax rose 10% to S$30.5m.

• Interest income increased 62% to S$8.6m, while other gains fell 90% to S$1.1m, mainly due to lower currency exchange gains.

• Overhead expenses rose 22% to S$63.9m; finance expenses fell 42% to S$0.7m.

• Operating cash flow was S$99.8m; cash and cash equivalents increased S$96.6m after currency translation to S$422.8m.

Outlook and guidance

• ~S$110m of new engineering contracts and major variations secured since FY2024 began contributed to a S$433m order backlog: S$152m in Energy Engineering and S$281m in Real Estate.

• Geospatial deferred services backlog was S$120m at 1H FY2024 end, including a ~S$42m Australian Federal Government contract.

• Business development and prudent cost management were to continue, with a risk-managed approach to opportunities amid global volatility.

• Half-year results may not reflect full-year performance due to the project-oriented nature of revenue; full-year comparisons were considered more appropriate.