ISOTeam (5WF) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 17.9% to S$130.2m, the highest since FY2019; profit attributable to equity holders increased 363.1% to S$6.5m.

• Gross margin recovered to 15.5%, supported by growth in R&R, A&A and C&P.

Financial highlights

• Gross profit increased 82.4% to S$20.2m; EPS rose to 0.91 Singapore cents from 0.28 cents.

• Operating cash flow before working capital changes was S$10.1m; net cash from operations was S$6.2m.

• Net assets increased to S$42.9m from S$25.7m; cash and bank balances were S$10.9m.

• Other income rose 24.0% to S$5.7m, mainly from a one-off subsidiary disposal gain and fair value gains on other investments.

• Proposed FY2024 dividend of 0.08 Singapore cents per share, subject to shareholder approval.

Outlook and guidance

• S$193.1m order book at 30 June 2024 supports work delivery progressively through 2027.

• Targeting consistent revenue growth of at least 10% year-on-year and continued profitability improvement.

• Internal goal to double HDB repainting market share to 30.0% by 2027.

• Focus on automation, digitalisation and green solutions to improve margins and operational efficiency.

• Cautiously optimistic outlook, with rising operational costs identified as a pressure to address.