Due to the government-mandated stoppage of construction work in a bid to curb the spread of Covid-19, Chip Eng Seng’s core construction and property development activities were stymied. “Minimal revenue was recognised,” says the company in its earnings statement.
The bright spot is the company’s education business. During the six months, revenue more than doubled to $11.5 million, thanks to contributions from its Invictus-brand international schools and Excelsior International School acquired last year, as well as higher revenue from its White Lodge preschools.
Nevertheless, the company has won more contracts during 1HFY20. As at June 30, its order book was $1.29 billion, up from $591.2 million as at Dec 31 2019.
Chip Eng Seng shares closed on Aug 3 at 42 cents, down 4.49% for the day and down a third year to date.
