ISOTeam

ISOTeam: maiden FY13 earnings double to $6.0m, on the back of a 36% rise in revenue to $48.2m, underpinned by contribution from Neighbourhood Renewal Programme (NRP) projects. These projects included NRP work for the town councils of Marine Parade, Tampines and Chua Chu Kang along with Repairs and Redecoration (R&R) work for the Pasir Ris-Punggol Town Council. The group also recorded a one-off gain of $4.2m from the disposal of its leasehold property at Kaki Bukit, which was sold in Jan ’13, which more than offset the $1.1m in IPO-related expenses. While gross profit increased 28% to $8.2m, margins narrowed to 17.0% from 18.1% a year ago, due to the higher sub-contracting costs. The group declared a final dividend of 1¢, which translates to a yield of 2.6%. Going forward, the group expects a general increase in demand for public sector upgrading, retrofitting and maintenance work in Spore. Underscoring this, the group recently clinched 3 contracts worth $10.9m to provide R&R works to 59 blocks of HDB flats across Ang Mo Kio, Bukit Batok West and Pasir Ris estates. Orderbook as at 14 Aug ’13 stands at $81m, which will be delivered over the next two years. At last close of $0.39, the counter trades at 7.6x P/E.