Bukit Sembawang Estates (B61) H1 2023 earnings summary

Executive summary

• H1 FY2022/23 revenue fell 39% YoY to $120.7m and net profit fell 76% to $12.6m, mainly reflecting lower profit recognised on development projects.

• Operating cash flow remained positive at $111.9m; after financing outflows, cash and cash equivalents were $533.1m at 30 September 2022.

Financial highlights

• Revenue was $120.7m, down 39% YoY; cost of sales fell 22% to $100.4m and gross profit fell 71% to $20.2m.

• Operating profit was $13.6m versus $64.2m YoY; profit before tax was $15.0m versus $62.1m.

• Net profit was $12.6m, down 76% YoY from $53.4m; basic and diluted EPS was 4.86 cents versus 20.61 cents.

• Other income declined to $0.1m from $0.7m, largely due to lower COVID-19 relief grants; other operating expenses decreased to $2.2m from $2.8m.

Outlook and guidance

• Nim Collection Phase 2 was fully sold; 82% of LIV @ MB’s 298 units had sold by end-Q3 2022, with sales activity planned for The Atelier and LIV @ MB.

• Pollen Collection was scheduled for preview in Q4 2022; sales of the developments were targeted to move positively over the next 6–12 months.

• Construction was underway at LIV @ MB, The Atelier and Pollen Collection; the projects were at foundation, reinforced concrete framework and end-of-piling stages, respectively.

• No specific prior forecast had been made; uncompleted-project profits are recognised based on stage of completion.