BRC Asia Limited, a leading steel reinforcement solutions provider in Singapore, has reported a 9% year-on-year increase in net profit, reaching S$42.1m for the first half of the financial year 2025. This growth comes despite a 6% decline in revenue to S$715.6m, primarily attributed to a drop in steel prices, whilst delivery tonnage remained stable.
The company’s gross profit fell by 10% to S$67.4m, impacted by a S$7.7m provision for onerous contracts, contrasting with a reversal of S$3.1m in the previous year. Nevertheless, BRC Asia’s operating profit rose by 8% to S$51m, supported by a significant increase in other income, which climbed to S$7.1m from S$2.2m the previous year. This was largely due to a net foreign exchange gain and fair value changes in derivatives.
Operating expenses decreased by 16% to S$23.8m, driven by lower finance costs and other operating expenses, although distribution and administrative expenses saw an uptick. The company has proposed an interim dividend of 6 Singapore cents per share, representing a 39% payout ratio and a 1.9% dividend yield.
Seah Kiin Peng, Executive Director and CEO of BRC Asia, expressed confidence in the resilience of Singapore’s construction sector, citing strategic government initiatives and a robust domestic project pipeline. The company’s sales order book stands strong at S$1.5b as of 31 March 2025, underscoring its stable market position amidst global economic challenges.
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