Boustead Projects reports 165% jump in Q3 profits

SINGAPORE - Mainboard-listed Boustead Projects Limited reported a 165 per cent jump in profits in the third quarter ended Dec 31.

Net profit for the three months was S$7.2 million. Revenue came in at S$85.6 million, which was 14 per cent lower than the three months a year before.

Profits grew due to an unusually low margin from a design-and-build project the year before, Boustead Projects, a real estate solutions firm, said.

Gross profit for the three months increased 83 per cent to S$19.4 million, driven by an improvement in gross margins for the design-and-build business and greater gross profit contribution by the leasing business.

Mr Thomas Chu, managing director of Boustead Projects said the firm had clinched a number of contracts recently.

"Most of them come from Malaysia - a key overseas market for us - and one contract for a sizeable data centre, thus allowing us to strengthen our foothold in higher value chain industries which we are targeting."

Boustead Projects said that despite the "highly challenging and competitive industrial real estate market", its order book backlog stood at a "healthy" S$179 million at the end of 3Q FY2016.

Earnings per share was 2.2 cents, up 175 per cent from 0.8 cents last year. Net asset value per share was 58.9 cents as at Dec 31, down from 79 cents as at March 31 last year.