Brook Crompton Holdings (AWC) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 16.3% YoY to S$71.8m; profit for the year increased to S$4.17m from S$1.98m, supported by growth in the UK, Canada and Australia.

• Profit before tax nearly doubled to S$5.57m, while EBITDA increased to S$6.2m from S$3.6m; H2 saw a slowdown in new orders.

Financial highlights

• Revenue was S$71.810m vs S$61.745m; gross profit was S$19.310m vs S$17.759m, with the full-year gross margin slightly lower YoY due to lower-margin project business in H1.

• Profit before tax rose 99% to S$5.567m; net profit was S$4.170m vs S$1.977m, and basic and diluted EPS was 11.8 cents vs 5.6 cents.

• Other income and gains increased to S$1.656m from S$1.053m, mainly reflecting higher management fee income from related parties; total expenses were S$14.7m, down 3.5% YoY.

• Operating cash flow was S$6.149m vs S$6.270m used in FY2022; year-end cash and cash equivalents rose to S$17.938m from S$13.312m.

Outlook and guidance

• 2024 priorities include growth in Australia and Italy, developing North America and UK operations, and expanding energy-saving and renewable product offerings.

• Plans include extending Prognosis Health Management service support through the Asia Pacific JV, investing in cyber-secure IT and reviewing an updated ERP system.

• UK and European growth is expected to slow through 2024; US economic growth is cited at 1.6%, with market-stagnation measures planned.

• Opportunities include Middle East and North Africa projects, North American HVAC customers, and Australia water, mining and steel projects.