Bukit Sembawang Estates (B61) H2 2023 earnings summary

Executive summary

• FY2023 net profit was $34.4m, as revenue and gross profit fell amid lower profit recognition from development projects and the development and sales cycle.

• Total equity was $1.475bn at 31 March 2023; property development remained the largest business segment by external revenue.

Financial highlights

• Revenue was $197.1m, down 32% YoY from $288.2m; gross profit was $34.1m, down 66% YoY.

• Profit before tax was $37.5m, down 61% YoY; profit after tax was $34.4m versus $82.9m in FY2022.

• Operating profit was $31.6m versus $98.7m; net finance income was $5.9m versus net finance costs of $3.4m.

• Operating cash flow was negative $85.1m versus positive $100.0m, while cash and cash equivalents ended at $294.0m versus $530.1m.

Outlook and guidance

• FY2024 priorities include The Atelier, LIV @ MB, Pollen Collection and launching the Bukit Timah Link residential site; construction at the three ongoing developments was progressing steadily.

• Within 12 months, management expected to sell all units at The Atelier and LIV @ MB; The Atelier was expected to obtain TOP in H1 2024.

• Bukit Timah Link was planned as a 20-storey, hillside-resort-themed development for investors and end users; Pollen Collection targets landed-home buyers seeking space and multigenerational layouts.

• Management intended to pursue sustainable growth and seek opportunities to supplement the land bank.