Written by The Edge
Specialist engineering group BBR Holdings (S) has posted net profit after tax and minority interests of $7.2 million for the six months ended 30 June 2010, an improvement of 41% from the $5.1 million it made in the same preceding corresponding period.
For half-year ended 30 June 2010, group revenue was $68.7 million compared to $115.0 million previously as revenue had not been recognised for several large construction projects.
Gross profit for half-year 2010 expanded by 78% from $7.4 million in 1H2009 to $13.2 million because of higher contributions from both specialised engineering and general construction projects.
The group’s tight project cost monitoring measures over the past six months have also resulted in an improved overall gross profit margin. Gross profit margin was also partly boosted by additional revenue from finalisation of billings for various projects completed in 2009, for which costs were already taken up last year. Compared with the same period last year, gross profit margin increased to 19% from 6%. Earnings per share stood at 2.33 cents against 1.65 cents in the previous corresponding period.
On a quarterly basis, revenue was $36.5 million in 2Q10 against $53.8 million previously due to lower revenue being recognised from general construction projects during the quarter.
Despite lower revenues, gross profit almost doubled to $6.8 million in the second quarter compared to $3.5 million in the preceding corresponding quarter as a result of higher profit contributions from the group’s specialised engineering and general construction projects.
The increase in gross profit was also due to additional revenue received from finalisation of billings for various projects that were completed in 2009, for which costs were already accounted for last year. Quarter-on-quarter, its gross profit margin saw a marked increase of 19% in the second quarter from 6% in 2Q09.
With a healthy order book of $576 million as at 12 August 2010, comprising mainly civil engineering and building projects in Singapore and Malaysia, BBR Holdings expects to remain profitable for financial year 2010.
Dividend : None
