Boustead Singapore posts 45% rise in profit, thanks to gain on sale of assets

Boustead Singapore has registered a 45 per cent jump in first quarter net profit to $17.7 million.

Revenue for the three months to June 30 rose by 14 per cent to $128.7 million.

Gross profit declined by 5 per cent to $38.3 million, with profit margin falling to 30 per cent from 36 per cent in the same period last year.

The fall was mainly due to the challenging conditions in the industrial real estate market.

Other operating income increased five-fold to $9.1 million, mainly due to a gain on disposal of assets held for sale and fair value gains on foreign exchange contracts and held-for-trading investments.

Earnings per share firmed to 3.5 cents from 2.4 cents previously while net asset value per share grew to 62.6 cents from 62 cents as at end March.

Since April, Boustead has secured more than $265 million in new orders, including contracts totalling over $100 million from the upstream and downstream oil & gas industries and a contract with a value significantly in excess of $100 million for the Seagate Singapore Design Center - The Shugart, which is the largest contract secured by Boustead Projects in its history.

Its order book currently stands at about $475 million.