Boustead Singapore's Q1 net profit drops 9% on lower one-off gains

SINGAPORE - A fall in one-off gains led to a decline in engineering and technology group Boustead Singapore's earnings.

Net profit in the first quarter dropped 9 per cent to $16.1 million as it logged a lower non-recurring other gains in the three months to June 30.

Other gains came in at $3.3 million, compared with $7.7 million in the same period a year ago.

The firm said that after adjusting for the non-recurring other gains, its net profit would have been 29 per cent higher.

Revenue in the quarter also decreased, falling by 2 per cent to $126.5 million.

Boustead Singapore said its sales is largely derived from project-oriented businesses and as such, quarterly results would not accurately reflect the full year's performance.

Earnings per share dropped to 3.1 cents from 3.5 cents previously.

Net asset value per share increased to 70.8 cents from 62.6 cents previously.

Chief executive Wong Fong Fui said in a statement: "Adjusting for non-recurring items, we delivered an improved performance.

Business conditions within certain sect ors continue to remain challenging but we believe that we can deliver a reasonable level of profit in FY2015."

Boustead Singapore closed down 1.5 cents to $1.78. It reported its earnings after markets closed.