ISOTeam (5WF) H1 2023 earnings summary

Executive summary

• 1HFY2023 revenue rose 18.6% YoY to S$53.4m, gross margin improved to 8.5% from 7.1%, and net profit was S$4.2m versus a S$3.9m loss.

• Order book stood at S$160.0m as at 13 February 2023, expected to support activities through FY2025.

Financial highlights

• Gross profit increased to S$4.5m from S$3.2m; cost of sales rose 16.7% YoY to S$48.9m amid persistently high raw-material costs.

• Net profit of S$4.2m included a one-off S$5.9m gain from disposal of non-core subsidiaries; 1HFY2022 recorded a S$3.9m loss.

• Overall expenses declined, mainly from lower staff costs and professional fees and reduced amortisation of intangible assets.

Outlook and guidance

• Order book projects of S$160.0m as at 13 February 2023 are expected to support activity until 30 June 2025.

• Singapore construction demand is forecast at S$27bn–S$32bn in 2023, with 60% expected from the public sector.

• Demand for estate upgrading and maintenance is expected to remain steady, supported by recurring, government-driven programmes including HIP and NRP.