Brook Crompton Holdings (AWC) H1 2023 earnings summary

Executive summary

• H1 revenue rose 25.7% YoY to S$38.3m; profit before tax increased 60.7% to S$4.1m and net profit rose 78.9% to S$3.2m.

• Growth reflected delayed project deliveries, new-region sales and lower operating costs; gross profit increased 10.4%, with lower project-business margins.

Financial highlights

• Revenue S$38.309m, up 25.7% YoY; cost of sales rose 32.3% to S$28.209m and gross profit grew 10.4% to S$10.100m.

• Profit before tax rose 60.7% to S$4.072m; net income increased 78.9% to S$3.236m, while income tax expense rose to S$836k from S$725k.

• EBITDA increased to S$4.5m from S$2.9m; total operating expenses fell 7.3% to S$6.5m.

• Basic and diluted EPS were both 9.13 Singapore cents, versus 5.10 cents in H1 2022.

Outlook and guidance

• Expected potential slowdown in H2 orders and revenue, particularly in Europe, amid market and geopolitical conditions; nevertheless, outlook was for profitable H2 2023 growth.

• Continuing to pursue existing and new customers and offer energy-efficient solutions; sustainability, renewable energy and hydrogen investment were identified as customer opportunities.