Boustead Singapore

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Business Times - 27 May 2011

Boustead's Q4 hit by Libyan provisions

But generous payout proposed as full-year net profit rises 21%

By VEN SREENIVASAN

DESPITE losses on its Libyan projects which sent it into the red for its fourth quarter, mainboard engineering company Boustead Singapore proposed a generous final payout of five cents per share after posting strong full-year earnings.

After provisions for its two Libyan projects following recent turmoil in that country, which resulted in 'other operating expenses' rising $19 million to hit $22.1 million, Boustead posted a loss of $1 million for the January-March 2011 final quarter. But revenue for the quarter was up 8 per cent to $110.1 million.

For the year ended March 31, the company lifted its revenue 28 per cent to a record $560.6 million, while net profit rose 21 per cent to $52.2 million - its second highest ever.

The cash-rich company declared a total dividend of five cents a share, comprising a final dividend of two cents per share and a special dividend of three cents per share. It paid out two cents a share in mid-year.

At the operating level, Boustead's gross profit surged 34 per cent to $178.1 million, widening its gross profit margin to 32 per cent from 30 per cent a year earlier.

Part of this came from the $67.8 million sale of IBM Singapore Technology Park.

Cash and bank balances decreased slightly to $209.8 million, but Boustead's net cash position was $184.6 million as at the end of FY2011, or a net cash per share position of 36.5 cents.

New businesses in all its core divisions did well during the last five months, with 20 contracts worth $158 million secured since January. Boustead's current order book stands at $230 million, and growing.

In terms of its four main business units, its energy- related engineering revenue rose 15 per cent to $140.9 million, thanks to the strong performance of downstream oil & gas business.

Water & wastewater engineering revenue declined 48 per cent to $28.7 million due to slower recognition from major projects compared to the previous financial year.

Real estate solutions revenue rose 61 per cent to $295.7 million. This included the $67.8 million sale of IBM Singapore Technology Park and substantial completion of two major projects for Rolls-Royce at Seletar Aerospace Park.

Geo-spatial technology revenue rose 27 per cent to $94.7 million (a new division revenue record), and included the maiden full- year contribution of acquired subsidiary MapData Services. The unit also benefited from strong sales of software and services to government agencies across exclusive markets in Australia and South-east Asia.

(Vested)