Gross profit for 1HFY2025 fell 10% y-o-y to $67.4 million, and gross profit margin declined to 9.4%. This is due to a $7.7 million provision for onerous contracts, compared to a reversal of $3.1 million in the prior-year period.
A net foreign exchange gain of $2.5 million and net gain of $2.4 million from fair value changes in derivatives resulted in other income rising to $7.1 million in 1HFY2025.
Operating expenses decreased by 16% y-o-y due to lower finance costs and other operating expenses, partially offset by higher distribution and administrative expenses.
However, distribution expenses rose by 18% y-o-y, driven by costs associated with a new subsidiary in Thailand. Administrative expenses increased by 11% y-o-y, due to higher legal and professional fees related to potential acquisitions and increased bonus provisions resulting from better financial performance.
See also: Marco Polo Marine's FY2025 earnings up 169.7% y-o-y on one-off gains and higher chartering income
As at end March, the group’s cash and cash equivalents stood at $143.8 million, and net assets came in at $478.6 million.
The group’s order book stood at $1.5 billion as at end March.
The board has proposed an interim dividend of 6 cents per share.
See also: LHN Limited earnings at $20 mil for FY2025, down 57.6% y-o-y from net fair value losses
"The stable delivery tonnage in 1HFY2025 reflects the resilience of our operations and the sustained demand from the domestic construction industry. Given strategic government initiatives and a robust domestic project pipeline, we remain confident in the agility and stability of Singapore's construction industry amidst a subdued economic outlook,” says Seah Kiin Peng, Executive Director and CEO of BRC Asia (SGX:BEC
) .
Shares in BRC Asia closed flat at $3.11 on May 13.
