Revenue from Bliss@Kovan condo project drives earnings at BBR Holdings

An artist's impression of Bliss@Kovan, a 140-unit freehold condominium near Kovan MRT station. Construction group BBR Holdings (S) has more than tripled its third quarter net profit to $8.4 million from $2.4 million previously. -- FILE PHOTO:&nb
An artist's impression of Bliss@Kovan, a 140-unit freehold condominium near Kovan MRT station. Construction group BBR Holdings (S) has more than tripled its third quarter net profit to $8.4 million from $2.4 million previously. -- FILE PHOTO: BBR HOLDINGS (S) LTD

Construction group BBR Holdings (S) has more than trebled its third quarter net profit to $8.4 million from $2.4 million previously.

Revenue for the three months to Sept 30 surged by 161.3 per cent to $120.2 million.

This was mainly due to higher revenue recognised from general construction and property development.

Most of the group's general construction projects are in their active stage of construction and have contributed to higher revenue during the current quarter.

For property development, progressive revenue for Bliss@Kovan was recognised during the quarter, compared to none in the same period last year because construction for Bliss@Kovan has not commenced at that time while Lush on Holland Hill was completed in the second quarter of 2012.

Revenue from specialised engineering also improved due to more on-going projects in Malaysia.

Gross profit increased to $11.9 million from $9 million, due mainly to higher contribution from property development, partially offset by lower profits from general construction activities, which decreased as a result of rising manpower and subcontractors' costs.

The group has commenced recognition of profits from its development property, Bliss@Kovan as construction progress has reached the active stage as at Sept 30.

Earnings per share firmed to 2.73 cents from 0.78 cent previously while net asset value per share rose to 38.15 cents compared to 35.1 cents as at Dec 31.

In view of the estimated contraction of the construction sector during the third quarter, coupled with increasing competition and expected increase in labour costs due to foreign worker shortages, the outlook for the construction industry is expected to be challenging in the next 12 months.

BBR said it will continue to focus on its core business by leveraging its strong track record and competency in building construction and civil engineering to secure more public sector projects as well as to explore ways of enhancing cost effectiveness and optimise its efficiency in the management of potential and on-going projects.

The group has an order book of some $1 billion, mostly in Singapore and Malaysia.