Catalist-listed Alpina Holdings has reported earnings of $5.2 million in the 2HFY2021 ended December, 25.9% higher than earnings of $4.2 million in the corresponding period the year before.
This brings earnings for the FY2021 to $9.3 million, which surged 84% from earnings of $5.0 million in the FY2020.
The earnings, which are a record-high for the company, come on the back of a record revenue in the FY2021, with strong performances from Alpina’s integrated building services (IBS), mechanical and electrical (M&E) engineering services segments.
Revenue for the FY2021 increased by 36.8% y-o-y to $51.9 million, which was bolstered by the 12.7% y-o-y growth in the company’s 2HFY2021 revenue at $26.6 million.
The growth in revenues were mainly attributable to higher revenue for the M&E business segment as a result of “significant work progress” for four of the company’s M&E projects in FY2021.
The higher revenue in the IBS business segment for the FY2021 was due to a low base in the 1HFY2020, where operations were temporarily halted during the circuit breaker period from April to May 2020.
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According to a statement released by Alpina, the circuit breaker period had resulted in a slowdown in the progress and revenue recognition of its IBS projects during the 1HFY2020.
Segmentally, FY2021 revenue for IBS increased by 21.48% y-o-y to $35.8 million.
Revenue for the M&E segment in the FY2021 surged 2.9 times – or 189.49% y-o-y – to $12.6 million from $4.3 million in the year before.
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The alteration and addition (A&A) segment was the only one to see its revenue decline some 14.24% y-o-y to $3.5 million.
Cost of sales for the FY2021 increased by 44.4% y-o-y to $39.0 million.
Accordingly, Alpina’s gross profits for the FY2021 grew 18.0% y-o-y to $12.9 million.
Other income during the FY2021 surged 8.5 times to $3.4 million from $397,000 the year before due mainly to the gain on disposal on the disposal of a property at 32 Woodlands Industrial Park E1.
Earnings per share (EPS) for the 2HFY2021 and FY2021 stood at 3.43 cents and 6.09 cents respectively on a fully diluted basis.
As at Dec 31, 2021, cash and cash equivalents stood at $2.3 million.
A final cash dividend of 0.2712 cent per share has been declared for the period.
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In its outlook statement, the company says the industry outlook in the near future looks promising due to the developing market trends in the integrated facilities management (IFM) and IBS industries.
According to the company, the Building and Construction Authority’s (BCA) industry transformation map is expected to drive demand for IFM and IBS services, particularly for public sector projects.
“The rising trend of IBS contracts evolving into IFM works, which also cover building and M&E maintenance, is expected to create new opportunities for IBS and IFM contractors,” reads the statement.
Commenting on the results for the FY2021, Alpina’s executive chairman and CEO Low Siong Yong says, “It has been a phenomenal year and the record performance was made possible by our continued focus on operational excellence and diligent cost management.”
“Our organic revenue growth in FY2021 was strong and it showcases the resilience of our value creation business model that focuses on public sector projects in Singapore. With an established track record of strong execution and delivering on our commitments, we aim to build on this momentum to capitalise on the growth opportunities ahead of us.
“With our successful listing in January 2022, we achieved another key milestone in our strategic roadmap. Moving ahead, we aim to expand our capabilities to offer differentiated offerings to strengthen our business model and develop new revenue streams,” he adds.
Shares in Alpina closed 0.5 cent higher or 2.17% up at 23.5 cents on March 30.
