NSL (N02) H2 2023 earnings summary

Executive summary

• FY 2023 revenue fell 19% YoY to S$298.1m, led by weaker Precast & PBU sales; adjusted PBT was S$20.1m, while reported results included S$35.6m of non-cash impairment losses.

• Reported net loss was S$19.6m versus net profit of S$9.6m in FY 2022; loss attributable to equity holders was S$18.7m and EPS was -5.01 cents.

Financial highlights

• Sales were S$298.1m, down 19% YoY; gross profit declined 10% to S$53.8m, with lower Precast Malaysia and PBU Finland sales.

• PBT was a loss of S$15.5m versus profit of S$13.9m; adjusted PBT, excluding impairments and disposal gains, was S$20.1m versus S$21.5m.

• FY 2023 income tax expense was S$4.1m; basic and diluted EPS was -5.01 cents versus 2.86 cents in FY 2022.

• 2H revenue fell 35% YoY to S$127.3m; adjusted PBT decreased 57% to S$6.4m, with a reported net loss of S$27.0m.

Outlook and guidance

• Precast operations in Singapore, Malaysia and Dubai are expected to perform satisfactorily, supported by strong order books; PBU Finland is expected to remain weak.

• Slop and RFO performance is expected to remain stable; Environmental Services will focus on increasing industrial wastewater capacity utilisation.

• A final FY 2023 cash dividend of S$0.02 per share was recommended, subject to shareholder approval at the AGM expected on or about 29 April 2024.