http://www.businesstimes.com.sg/arch...4-39m-20140501
Published May 01, 2014
Soilbuild's Q1 net climbs 4% to $3.9m
By Mindy Tan
[email protected] @MindyTanBT
SOILBUILD Construction Group's net profit for the first quarter ended March rose 4 per cent to $3.9 million. Meanwhile, revenue rose 28 per cent from $68.1 million a year ago to $87.3 million.
"We are pleased to report revenue and profit growth despite the industry-wide challenges faced by our sector," said Ho Toon Bah, executive director of Soilbuild Construction Group.
The increase in revenue was mainly due to revenue recognition in line with the progress of five key construction projects. These comprise a mixed use development project at Lavender, an Ang Mo Kio HDB project, Bukit Batok BizHub, Mandai Connection and Northview BizHub.
Despite higher revenue and gross profit, the group's gross profit margin declined from 8.8 per cent to 7.2 per cent, mainly due to additional construction costs incurred from extending the construction period of a project for additional works. The project has since been completed in early April.
As at end-March, the group had cash and cash equivalents amounting to $71.3 million and no borrowings.
Earnings per share for Q1 of the current year was 0.58 cent versus 0.75 cent a year ago.
Looking ahead, Mr Ho said the group will continue to leverage its construction expertise and network to seek out additional contract prospects.
"The group's order book currently stands at $356.3 million, and we expect to complete a substantial part of this over the next 12-24 months," he said.
"In the meantime, the group will continue to look for potential to further build our presence within Myanmar and other countries in South-east Asia."
Soilbuild's counter ended trading unchanged at 26 cents.
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