Global Resource Construction (S3N) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue fell 38.5% YoY to S$5.31m, while net profit rose to S$1.00m from S$0.06m, supported by lower expenses and the absence of prior-year property fair-value losses.

• Operating cash flow was S$0.28m; cash and cash equivalents ended the period at S$7.68m after S$5.06m of net financing outflows.

Financial highlights

• Revenue was S$5.313m, down 38.5% YoY; gross profit was S$4.298m, down 40.6%, and gross margin decreased 2.9% YoY.

• Other income increased to S$0.391m from S$0.065m, including a one-off gain on investment-property sales and fair-value changes; other expenses fell to nil from S$3.00m, the prior-year property fair-value loss.

• G&A expenses fell 33.0% to S$1.878m; finance costs rose 6.1% to S$1.524m, mainly due to higher bank-loan interest rates.

• Profit before tax was S$1.287m versus S$0.065m; net profit was S$1.004m versus S$0.062m, with S$0.283m income-tax expense in H1 FY2024.

Outlook and guidance

• Portfolio strategy review continues, with assessment of property relevance to overall strategy and exploration of new business opportunities.