BBR Holdings profit crumbles 35% to S$20.1m

But gross profit margin improved in FY12.

Mainboard-listed BBR Holdings (S) Ltd (BBR) announced its net profit after tax attributable to parent was S$13.0 million for the full year ended 31 December 2012 (FY2012), compared to S$20.1 million previously. Gross profit was lower at S$35.4 million compared to S$41.7 million a year earlier. However, despite the lower revenues and gross profit, the Group’s gross profit margin of 12.9 per cent was an improvement over the 10.1 per cent it registered in the previous corresponding period. This is mostly attributable to the differences in the project mix.

BBR Holdings also revealed revenue of S$274.2 million. The Board of Directors recommends a one-tier tax-exempt first and final special dividend of Singapore 0.4 cents per share, over and above the ordinary first and final dividend of 0.8 cents per share. Upon approval by shareholders at the forthcoming annual general meeting on 26 April 2013, the proposed dividends will be paid on 20 May 2013. This represents a dividend growth of 50 per cent compared to the previous year.

During 2012, the company successfully completed a number of general construction projects and the property development at Lush on Holland Hill. Consequently, the overall recorded revenue compared to that of 2011 was lower by 33.7 per cent, following the business dynamics. However, the specialised engineering segment revenue enjoyed a growth of 7.4 per cent compared to the previous year. This growth came mainly from projects secured and executed by the Group’s Malaysian subsidiary. In addition, as the construction of several new projects, including Bliss@Kovan project have just commenced, these revenue contributions were not yet significant.

In contrast, FY2011’s strong revenue was mainly due to general construction projects, including the property development project at Lush on Holland Hill, which were then in active stages of construction. The Temporary Occupation Permit for Lush on Holland Hill was issued in July 2012.

Basic earnings per share was 4.24 Singapore cents for the 12 months ended 31 December 2012, based on the weighted average number of ordinary shares in issue, compared to 6.57 Singapore cents a year ago.

BBR’s Chief Executive Officer Mr Andrew Tan said: “We were happy to complete a number of projects successfully in 2012, and to significantly decrease our debt levels while still retaining strong liquidity position. This gives us a good basis going forward. We will rely on our strengths as one of Singapore’s leading construction groups with more than 20 years’ of industry experience to help us secure more projects for the long term. We are pleased that currently, our order book stands at S$960.0 million with projects lasting up to 2015. These comprise mainly civil engineering and building contracts predominantly in Singapore and Malaysia.

“The global economic situation remains uncertain, thus still having a negative impact on the overall business environment worldwide and in Singapore. In addition, the Singapore Government in January 2013 introduced further measures to curb the property market in an effort to cool rising property prices. Although it has been a challenging past year for the Group and competition remains keen, we will continue to pitch for government tenders and private sector projects.”