Saturday, January 8, 2011

Engineering/property firm's half-time profit up

ENGINEERING and real estate group Tee International yesterday reported a 53.6 per cent rise in half-time net profit to $6.9 million.


Its revenue in the six months ended Nov 30 more than trebled to $114.1 million from $35.4 million previously.


Tee chief executive C.K. Phua was delighted with the group's performance and the strong inflow, as well as completion of engineering projects according to schedule.


Sales in the real estate segment also picked up, in tandem with the buoyant Singapore and regional economies.


'We achieved healthy balance-sheet and cash positions, which will enable us to take on new business opportunities with confidence for the rest of the financial year,' he said.


The mainboard-listed group generated net cash of $21.2 million from operations, thanks to the timely receipt of receivables and proceeds from the sales of completed property.


Overall, cash and bank balances stood higher at $26.9 million while cash and cash equivalent amounted to $18.1 million, after deducting pledged fixed deposits and project accounts.


On the flip side, other operating income nearly halved to $566,000 from $1million, owing to reduced fair value gain of a commodity contract.


Administrative expenses rose by 68.5 per cent to $3.7 million, led by an increase in the number of professional staff. This is in line with the number of new large-scale projects awarded to the group.


Earnings per share firmed to 4.74 cents from 3.2 cents previously, while net asset value per share climbed to 31.35 cents from 28.31 cents as of May 31.


Looking ahead, Tee maintains a cautiously optimistic outlook over the next 12 months. Its strong order book, sizeable land bank and management capabilities have enhanced the prospect of its future earnings.


In the engineering segment, the group's outstanding order book amounts to $284 million, of which the lion's share, or $147.5 million, is for a project to design and build 1,500 homes in Brunei.


It has also completed the acquisition of two freehold sites at Geylang Road and East Coast Road.


The company declared an interim dividend of 0.5 cent a share.


Tee shares yesterday surged 2.5 cents or 10 per cent to 27.5 cents.


ON TRACK


'We achieved healthy balance-sheet and cash positions, which will enable us to take on new business opportunities.'


Tee chief executive C.K. Phua

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