ISOTeam (5WF) H2 2024 earnings summary

Executive summary

• Achieved highest revenue since FY2019 at $130.2M, up 18% year-over-year, with gross margin rebounding to 15.5% and net profit attributable to equity holders rising 364% to $6.5M.

• Proposed dividend of 0.08 Singapore cent per share and significant improvement in financial ratios, including ROE at 15.2%.

• Strong order book visibility through FY2027, supported by robust public sector demand and government initiatives.

• Continued transformation with automation, digitalisation, and AI-driven solutions to address labour challenges and improve productivity.

Financial highlights

• Revenue reached $130.2M (+18% yoy); gross margin improved by 5.5 pts to 15.5%.

• Net profit attributable to equity holders was $6.5M (+364% yoy); EPS rose to 0.91¢ from 0.28¢.

• Operating cash flows before working capital changes increased to $10.1M; net cash from operations at $6.2M.

• Net assets grew to $42.9M from $25.7M; cash and bank balances at $10.9M.

• Proposed dividend payout of 0.08 Singapore cent per share.

Outlook and guidance

• Construction demand in Singapore projected to remain strong through 2028, driven by public sector projects and new government initiatives.

• GDP growth forecast for 2024 upgraded to 2.0–3.0%; construction sector grew 3.8% yoy in 2Q24.

• ISOTEAM aims for consistent revenue growth of at least 10% year-on-year and continued profitability improvement.

• Focus on automation, digitalisation, and green solutions to enhance margins and operational efficiency.