SINGAPORE (Aug 12): Boustead Projects has reported a 73% rise in 1QFY19 earnings to $10 million compared to $5.8 million a year ago, mainly boosted by a one-off gain from the sale of a property.
Revenue for the quarter under revenue was 7% higher y-o-y at $10 million due to higher design-and-build revenue, partially offset by lower leasing revenue.
Notably, the group booked a $5.9 million gain on the sale of 25 Changi North Rise, a design-build-and-lease building for anchor tenant UMS.
Boustead Projects says that after adjusting for the gain and expenses associated with the asset’s sale, total profit would have been 11% lower on-year due to higher overhead expenses and greater share of loss of an associated company and joint ventures (JVs).
Specifically, selling and distribution expenses grew 27% over 1Q to $1.3 million from $1 million a year ago, while administrative expenses rose 24% to $7 million from $5.6 million previously.
Share of loss of an associated company and JVs grew 63% to $1.6 million from $1 million in 1QFY18, after eliminating share of unrealised construction and project management margins.
These were however by higher gross profit achieved overall through productivity improvements and the unlocking of project cost savings, says the group.
“With a slightly better outlook for FY2019, we remain positive that our market leadership, financially-sound position and strong business development efforts will allow us to capitalise on a steady pipeline of opportunities both in Singapore and overseas,” says Thomas Chu, managing director of Boustead Projects.
“We continue to invest in smart and eco-sustainable building capabilities, drive cost and productivity improvements, and intensify our efforts in securing strategic partnerships and acquisition targets that can support our market expansion and extend our capabilities,” he adds.
Shares in Boustead Projects closed 1 cent higher at 90 cents on Friday.
