Boustead H1 profit down 10% at S$31.5 million despite revenue increase
Company attributes drop in earnings to lower gross profit margin and higher effective income tax rate
Boustead Singapore, an engineering and technology group, reported a 10% decrease in net profit to S$31.5 million in its first half, even as revenue surged 38% to S$406.6 million. The drop in earnings was primarily due to a lower gross profit margin and a higher effective income tax rate. The company also cited a dilution of shareholdings in UIB Holdings, an associate of subsidiary Boustead Projects, resulting in a S$8.4 million reversal of share of net asset value.
Earnings per share for the half were S$0.062, down from S$0.071 in the previous period. Boustead's chairman and group CEO, Wong Fong Fui, acknowledged navigating a challenging global environment and highlighted the group's engineering order backlog of S$720 million, with significant contributions from the energy engineering and real estate solutions divisions.
The board declared an interim cash dividend of S$0.02 per share, an increase from the previous year.
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