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BBR announced its FY 2011 results this evening. Upfront, I should declare a bias since I have been vested for some time in BBR - it is one of my favourites.
I believe these are a very solid set of financials. Summarising into three positives and one not-so-positive:
+ Revenue doubled. Building construction revenue was up ~ 70%. Singapore revenue streams were particularly strong.
+ EPS up ~ 3% to S$cents 6.57.
+ Dividend increased by one third to S$ cents 0.8 per share, putting BBR on a more respectable ~ 3.6 % dividend yield.
- Gross Profit Margin down by a third - CEO Andrew refers to a change in the "project mix" in his press release.
Looking forward, CEO Andrew talks about a S$ 590 Million order book with work stretching out until 2015. It appears BBR's diversification has paid and is paying off. The challenge will be to eek out a decent margin on this volume in a highly competitive construction environment.
BBR's NAV now stands at S$ 0.32 per share, over 40% more than its S$ 0.225 closing share price today. I believe BBR has proven itself to be reliable earner over the years, including when the going gets tough, as it did in 2H 2011. It will be interesting to see in the coming months if Mr. Market will reward this well managed and highly diligent company with a closing of the gap between its share price and NAV.
Just my two cents worth - I hope I have been balanced in my summary............ even though I am .............
Vested,
I believe these are a very solid set of financials. Summarising into three positives and one not-so-positive:
+ Revenue doubled. Building construction revenue was up ~ 70%. Singapore revenue streams were particularly strong.
+ EPS up ~ 3% to S$cents 6.57.
+ Dividend increased by one third to S$ cents 0.8 per share, putting BBR on a more respectable ~ 3.6 % dividend yield.
- Gross Profit Margin down by a third - CEO Andrew refers to a change in the "project mix" in his press release.
Looking forward, CEO Andrew talks about a S$ 590 Million order book with work stretching out until 2015. It appears BBR's diversification has paid and is paying off. The challenge will be to eek out a decent margin on this volume in a highly competitive construction environment.
BBR's NAV now stands at S$ 0.32 per share, over 40% more than its S$ 0.225 closing share price today. I believe BBR has proven itself to be reliable earner over the years, including when the going gets tough, as it did in 2H 2011. It will be interesting to see in the coming months if Mr. Market will reward this well managed and highly diligent company with a closing of the gap between its share price and NAV.
Just my two cents worth - I hope I have been balanced in my summary............ even though I am .............
Vested,
RBM, Retired Botanic MatSalleh