BBR Holdings net profit doubled to $9.4mln in 1Q 2011

This was on the back of $109.4mn revenue for the first quarter ended 31 March 2011.

According to BBR, its net profit was double the $4.5 million it registered in the preceding quarter, and its revenue in the first quarter of 2011 saw a tripling from the $32.3 million it turned in previously.

The higher Group revenue was mainly due to the initial progressive revenue recognition of its property development project Lush on Holland Hill and higher revenue contribution from its specialised engineering and general construction projects which are currently at their active stage of construction.

For the period under review, gross profit rose significantly by 115% to $13.7 million from $6.4 million in the previous corresponding quarter, with higher contribution from all three business segments as a result of increase in revenue.

Earnings per share for 1Q2011 was 3.07 Singapore cents, an increase of 110% compared to 1.46 Singapore in 1Q2010.

BBR Chief Executive Officer Andrew Tan was delighted with the Group’s fine performance. He said: “The team has worked hard on all fronts and we are happy that this is reflected in our financials. Still, it is important that we continue to strive hard to convert tenders into contract wins in order to sustain our growth for the rest of the year and stay profitable.”

To date, the Group’s order book stands at S$640 million with projects lasting up to 2015. These comprise mainly civil engineering and building contracts predominantly in Singapore and Malaysia.

BBR Group, which started in 1993 as a specialist engineering group, currently has three core business activities, namely, General Construction, Specialised Engineering and Property Development.

Stronger Financials

The Group’s financial position was stronger with total assets of $319.5 million and net assets of $90.3 million compared to $248.6 million and $8.6 million registered at year-end FY2010 respectively. Total equity increased by $9.7 million to $90.3 million as at 31 March 2011, representing an increment of 12% over the year-end FY2010 of $80.6 million. Net asset value per share stood at 29.45 Singapore cents or 12% higher than at 31 December 2010.

Cash and cash equivalents as at 31 March 2011 increased by $17.3 million to $62.2 million compared to $44.9 million as at 31 December 2010, due mainly to the repayment of shareholders’ loan and dividend received from its associate, Tennessee Pte Ltd, cash receipts from progressive completion of Lush on Holland Hill, and partially offset by cash paid (net after borrowings) on completion of the purchase of development property at Simon Lane and early lumpsum settlement of term loan of $5.0 million. With a stronger cash position, the Group anticipates that it has sufficient working capital and still retain the ability to pursue future growth opportunities.