Financials
UNAUDITED INTERIM REPORT - FOR THE FIRST HALF YEAR ENDED 30 JUNE 2025
Financials Archive
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Consolidated statement of profit or loss
The calculation of basic earnings per share at 30 June was based on profit attributing to owners of the Company and the weighted average number of ordinary shares outstanding.
Consolidated statement of other comprehensive income
Statements of financial position
Review of performance
Revenue
For the first half ended 30 Jun 2025(1H2025), the Group recorded total revenue of $103.3 million, a 3.5% increase from $99.8 million in the corresponding period last year (1H2024).
The Civil Engineering segment remained the key revenue driver, contributing $90.1 million or 87.2% of total revenue, up from $72.0 million (72.1%) in 1H2025 —mainly due to the higher construction activities for Serangoon North station project (CR113) and Aviation Park station project (CR103).
Revenue from Property Development segment declined to $13.1 million (12.7%) in 1H2025 from $27.7 million (27.8%) in 1H2024, as less units were sold at Shine@TuasSouth.
Gross Profit
The Group recorded a gross profit of $7.8 million for 1H2025, representing a 63% decline compared to $21.3 million in 1H2024.
The Civil Engineering segment posted a significantly lower gross profit of $2.0 million, a decrease of $8.3 million (or 80%) from 1H2024, as ongoing projects continued to face elevated cost pressures. Gross profit for 1H2024 had included cost savings recognized during the final account settlement of the CAG JV project—this was not recurring in 1H2025.
The Property Development segment also saw a decline in gross profit, primarily due to reduced sales activity during the period.
Other Income
Other income was $5.4 mil, decrease of $1.0 million (-15.4%). Mainly due to lower rental income from unsold development units , lower government grant and interest income.
Distribution and selling costs
Lower distribution cost was related to the sales of development properties.
Administration costs
Lower administration costs recorded for 1H 2025 was due to lower performance bonus.
Profit before tax and tax expenses
In summary, the lower 1H2025 profit before tax was due to reduction in gross profit and lower other income.
Financial position and cash flow review
Non-current assets was $47.7 million, increased by $3.2 million as compared to end of 2024, mainly due to acquisition of plant and equipment of $2.3 million (net of depreciation and disposal) and long term investment securities of $2.0 million.
Net current asset decreased by $2.8 million, mainly due to the lower cash balance of $6.5 million, cost recognisation for development property of $7.3 million and lower investment securities of $0.6 million, offset by higher working capital $9.5 million (contract asset , liabilities , trade receivable and payable) and utilisation of projects maintenance provision of $2.0 million.
Lower cash balance of $6.5 million was mainly due to dividend payment of $9.2 million , cash outflow for investing activities $1.4 million ( for purchase of plant and equipments and addition of investment securities ) offset by the cash generated from operating activies of $4.6 million. Operating cash flow was mainly utilised in the higher contract assets , offset by the proceeds in sales of development properties and release of partial retention of CAG JV project.
Investment securities (current and non-current) amount to $40.5 million , increased by $1.3 million. Mainly due to the addition of bonds and credit linked note of $3.3 million, gain in market value of $0.8 mil offset by the redemption of bond $2.8 million.
Shareholders equity was $283.3 million, about $0.7 million lower than 31 December 2024. Mainly due to the dividend payment of $9.2 million and purchase of treasury shares of $0.2 million in 1H2025 offset by the current period net profit after tax of $8.5 million and the fair value gain for investment securities recognised in comprehensive income of $0.2 million.
Commentary
The order book for civil engineering segment stands at approximately $335 million as at 30 June 2025 which include mainly the Aviation park station project and Serangoon North Station project.
The Group’s industrial building project, Shine@TuasSouth, has sold 59.2% and leased 39% of the total units to date.
The outlook of construction industry remains challenging on the back of competitive environment, labour shortage, rising material and labour cost. The management will continue to tender for infrastructure projects competitively and explore other business opportunities to enhance the shareholders’ value.