SINGAPORE - Catalist-listed construction and refurbishment player ISOTeam bounced back to the black for the second half and full year as post-pandemic repairs and upgrades built up momentum towards end-June.
The company posted a net profit of $1.51 million for the January-June 2023 second half, raising its full-year attributable net profit to $1.41 million.
This was a turnaround from a 2022 second-half loss of $9.26 million and a full-year loss of $13.24 million during the last financial year ended June 2022.
At the top line, ISOTeam’s turnover for its January-June 2023 second half rose almost 10 per cent to $57.69 million, from $52.67 million. For the 12 months to end-June, revenue rose over 14 per cent to $110.4 million, from $96.48 million.
Analysts at Lim & Tan Securities, which covers the firm, noted that the return to the black was also helped by the divestment of non-core businesses in December 2022, resulting in a one-off gain of $5.9 million, “which stemmed recurring losses once and for all”.
ISOTeam mainly operates under four segments – repairs and redecoration, addition and alteration, coating and painting, and pest control.
Almost two-thirds of its contracts come from public-sector projects, including Housing Board upgrading and maintenance.
The company expressed confidence that the upward momentum of its top line and bottom line will remain intact amid robust demand in the building and construction sector in Singapore.
“ISOTeam is optimistic that demand for its services will be steady due to the recurring nature of its projects – many of which are government-driven, including national upgrading programmes such as the Home Improvement Programme and the Neighbourhood Renewal Programme,” the company said in a statement accompanying its results.
Advance estimates on July 14 by the Ministry of Trade and Industry show that Singapore’s construction sector grew by 6.6 per cent year on year in the second quarter of 2023, extending the 6.9 per cent growth in the first quarter.
The Building and Construction Authority expects total construction demand in Singapore to remain strong in 2023, ranging between $27 billion and $32 billion. The public sector is expected to contribute 60 per cent of this demand, particularly in industrial and institutional construction, and further supported by HDB’s ramping up of the supply of Build-To-Order flats, and the construction of water treatment plants and community clubs.
As at June 30, ISOTeam’s order book stood at $175.8 million, which the company said would support its activities through the next two years.
