CSC Holdings (C06) H2 2024 earnings summary

Executive summary

• FY24 revenue rose 15.4% to $305.3m as foundation and geotechnical activity increased; the attributable net loss narrowed to $20.2m from $26.7m.

• First-half gains from higher-margin work were eroded in H2 by weaker tender activity, lower-margin public projects, and elevated operating and finance costs.

Financial highlights

• Revenue was $305.3m versus $264.6m in FY23; gross profit increased to $14.4m from $6.3m.

• Gross margin improved to 4.7% from 2.4%; EBITDA rose to $9.2m from $2.9m.

• Operating expenses fell 3.7% to $29.6m; this included a $1.3m recovery of long-outstanding bad debts.

• Net finance expenses rose to $6.6m from $4.6m, while net loss attributable to shareholders narrowed 24.4% to $20.2m.

Outlook and guidance

• Construction-services demand is expected to improve, led by public housing and infrastructure, including Cross Island MRT contracts, Changi Airport Terminal 5, and Tuas Port works.

• Private demand is expected from residential land sales and integrated-resort expansions; higher skilled-labour costs and elevated raw-material and energy costs remain expected pressures.

• Future revenue from unsatisfied or partially satisfied construction obligations was $128.5m; 42% was expected to be recognised in FY25.

• Malaysia demand is shifting from bored piling toward precast jack-in piling; resources are being reallocated to improve cost and operational efficiency.