Catalist-listed ISOTeam has reported earnings of $1.9 million in the 1HFY2025 ended Dec 31, 2024, up 36.5% y-o-y from the same period a year before.
The building maintenance and estate upgrading company reported earnings per share of 0.28 cents, 7.7% y-o-y increase from 0.26 cents in the same period a year ago.
The group’s 1HFY2025 revenue grew 4.2% y-o-y to $65.4 million, due to its addition and alteration (A&A) segment, which contributed a 61.6% y-o-y jump in revenue to $30.3 million in the 1HFY2025 period.
This made up for weaker revenue contribution from the repairs and redecoration (R&R), coating & painting (C&P) and Others segment, which recorded y-o-y declines of 28.5%, 2.0% and 12.3% respectively.
Gross profit rose 18.4% y-o-y to $9.9 million in 1HFY2025, while gross profit margin increased 1.8 percentage points to 15.1% from 13.3% in 1HFY2024.
The group's order book stands at $188.7 million as at Feb 11, with projects that will be progressively completed until FY2029.
The group’s wholly-owned subsidiary, ISOTeam BuildTech, which was incorporated in July 2024, is already conducting facade inspections using drones and expects to commercialise its indoor painting robots and autonomous facade washing and painting drones by end 2025.
In the mid to long term, ISOTeam BuildTech will also offer end-to-end managed services for clients to develop an effective robotic workforce, which the group says may potentially become a new source of revenue.
In its outlook, the group says that it is actively tendering for various ongoing public sector upgrading initiatives such as the Neighbourhood Renewal Programme and the Home Improvement Programme as well as shorter-term projects such as the Sports-in Precinct Scheme and the $60.0 million Green Town Programme.
See also: LHN Group adds 45 new keys and 29 new facilities management contracts in 1QFY2025 business update
With a positive industry outlook, and barring unforeseen circumstances, ISOTeam is cautiously
optimistic about its prospects and expects more projects to be available for tender. The group is also mindful of rising manpower and material costs and will continue to prioritise cash conservation and cost control to manage the high-cost environment.
Shares in ISOTeam closed flat at 6.5 cents on Feb 11.
