BOUSTEAD Singapore : F9D 0% on Tuesday (Nov 14) reported a 19 per cent rise in net profit at S$26.9 million for the first half of FY2024 ended Sep 30, 2023, compared with S$22.6 million the previous year.

This came on the back of a 49 per cent increase in revenue at S$367.9 million. This was driven by significantly higher contributions from its energy engineering, real estate and geospatial divisions.

The infrastructure-related engineering and technology group also attributed the net profit rise to a 62 per cent jump in interest income to S$8.6 million, and an increased shareholding in Boustead Projects, after the voluntary unconditional cash offer closed in March.

The increases in revenue and interest income growth were, however, offset by higher overhead expenses, income tax expenses and share of losses of associates and joint ventures, said the group.

The results translated to earnings per share of S$0.056, up 19 per cent from S$0.047 in the corresponding year-ago period.

The board declared an interim dividend of S$0.015 per share, unchanged from a year earlier.

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Boustead Singapore’s energy engineering division’s revenue was 130 per cent higher year on year, at S$88.1 million. This was mainly due to the division’s stronger revenue recognition from a higher order backlog, carried forward at the end of FY2023, compared with FY2022.

“The continuation of favourable conditions in the global energy sector also had a positive effect on the division’s activities,” the group said.

Its real estate division, Boustead Projects, registered 45 per cent higher revenue year on year, at S$170.2 million. The geospatial division’s revenue, meanwhile, rose 23 per cent to S$104.7 million, with growth recorded across all key markets and an uplift from a landmark contract in Australia.

Boustead Singapore said its healthcare division, which has been undergoing restructuring, registered 8 per cent lower revenue at S$4.7 million.

While the group’s gross profit increased 42 per cent year on year, overall gross margin declined slightly to 29 per cent, compared with 30 per cent in H1 FY2023.

The group’s net asset value per share increased to S$0.976 at the end of H1 FY2024, from S$0.949 at the end of FY2023. Its net cash position increased to S$379.4 million, representing S$0.795 net cash per share position.

Wong Fong Fui, chairman and group chief executive of Boustead Singapore, said: “Moving forward, we will continue to boost our business development efforts and prudently manage our costs amid the volatile global environment, taking a risk-managed approach in the pursuit of opportunities.”

He noted that given a strong net cash position, the group is ready to capture opportunities to ensure long-term value creation for shareholders.

The group requested a trading halt on Friday. Its shares last traded at S$0.835 on Thursday.