Company Briefs: Frasers Hospitality

Frasers Hospitality

After more than 20 years at the helm of Frasers Hospitality, Mr Choe Peng Sum, 58, will retire as chief executive tomorrow.

He will take up the role of senior adviser to Frasers Property from this weekend.

The recruitment of Mr Choe's successor is "progressing well", the property group said in a statement.

Frasers Property's chief executive, Mr Panote Sirivadhanabhakdi, said that during his tenure, Mr Choe grew the portfolio under management from Fraser Suites in Singapore in 1998 to more than 150 serviced residences and hotels in 80 cities with assets under management valued at $4.8 billion.

He added: "Under his stewardship, Peng Sum built a well-recognised, highly awarded global brand and launched Frasers Hospitality Trust, the first global hotel and serviced residence trust to be listed on the SGX."

Boustead Projects

Boustead Projects saw net profit fall 15 per cent for the third quarter ended Dec 31 last year to $6.8 million, from $8 million for the year-ago period, the industrial real estate solutions provider announced on Tuesday night after the market closed.

This was despite revenue soaring 70 per cent to $81.3 million, from $47.9 million for the year-ago period, which the group attributed to higher design-and-build revenue, partially offset by lower real estate revenue with the lease expiry of 85 Tuas South Avenue 1 in January last year.

Earnings per share for the third quarter was 2.2 Singapore cents, down 12 per cent year on year from 2.5 Singapore cents.

Boustead Projects said the lower third-quarter profit was mainly due to slightly lower gross margins on ongoing projects, lower cost savings from previously completed projects, and an increase in the elimination of its share of unrealised construction and project management profits mainly from joint venture projects.

The group highlighted that as its revenue is largely derived from project-oriented business, quarterly results may not accurately reflect full-year performance. The latest results took net profit for the first nine months to $24.9 million, up 7 per cent year on year.

Boustead Projects' current order book backlog stands at $679 million, with a record $615 million worth of contracts secured since the start of FY2019. Managing director Thomas Chu said that a $242 million contract secured in December with JTC Corporation and a $200 million contract won in January with Surbana Jurong are expected to contribute significantly to revenue in the 2020 and 2021 financial years.

A version of this article appeared in the print edition of The Straits Times on February 14, 2019, with the headline 'Company Briefs'. Print Edition | Subscribe