CSC Holdings (C06) H1 2023 earnings summary

Executive summary

• H1 FY23 revenue fell 4.1% YoY to $118.0m; a $0.5m gross loss and $16.9m net loss replaced prior-year profits.

• Lower Singapore construction activity, weak project margins and higher material, energy, finance and FX costs weighed on results; order book reached $220m at 30 Sep 2022.

Financial highlights

• Revenue was $118.0m, down 4.1% YoY; cost of sales rose 8.7% to $118.5m, producing a gross loss of $0.5m versus gross profit of $14.1m.

• Operating loss was $14.8m versus operating profit of $0.7m; net finance expenses were $2.1m versus $0.3m; net loss was $16.9m versus net profit of $0.04m.

• Net loss attributable to owners was $16.7m; basic and diluted loss per share were 0.475 cents versus 0.003 cents.

• Net operating cash inflow was $2.4m; investing outflow $4.2m and financing outflow $12.8m; cash and cash equivalents closed at $16.3m.

Outlook and guidance

• Construction activity is expected to rise as migrant-worker supply improves and the backlog of recently awarded projects begins contributing revenue in coming months.

• Order book was ~$200m at 14 Nov 2022, versus $150m on 25 May; barring unforeseen circumstances, most is expected to be delivered within nine months.

• Prudent tendering, asset utilisation, cost and operational efficiency, and tight capital and cash-flow management remain priorities.