OPERATING AND
FINANCIAL REVIEW
(ANY DISCREPANCIES IN FIGURES ARE DUE TO ROUNDING.)
OPERATING REVIEW
R&R
In FY2016, we completed 16 R&R
projects comprising 211 blocks of
HDB flats in Singapore, compared
to 23 projects and 445 blocks in
FY2015. See Table 1.
ISOTeam also moved into HDB term
contracts for the first time in FY2016
by winning two maintenance
contracts for building tradesmen
and repair works in the East and
West Zones that are worth around
$9.6 million and run up till March
2018. We also secured a project for
improvement works to multi-storey
car parks (
“MSCP”
) valued at around
$3.9 million as well as our first
institutional R&R contract for the
National University of Singapore’s
Bukit Timah campus.
As at 30 June 2016, we are repainting
and redecorating 114 blocks and
other buildings for 12 R&R projects
which are expected to complete
between now and August 2018.
Notably, ISOTeam secured three
of these contracts even though
we were not the lowest tenderer,
attesting to the strength of our brand
in the R&R space. See Table 2.
A&A
We completed a total of 11 A&A
projects including a warehouse cum
office, showrooms and hospitals in
FY2016 compared to 54 blocks for
two projects in FY2015. Among these
are eight key projects completed
by ISOTeam TMG that included
the showrooms for Bentley and
Aston Martin, and Palio at RWS. We
acquired this unit in December 2015
to spearhead the Group’s specialist
A&A, architectural and commercial
interior design offerings. See Table 3.
KEY HIGHLIGHTS
Corporate
Completed a 1-for-1 bonus
share issue in February 2016
which doubled our share
capital base to around 284.7
million shares.
Paid 0.75 cents per share in
dividends for FY2016, reflecting
a higher year-on-year payout
of 23.1%. Dividend per share
would have been 1.5 cents
apiece if the 1-for-1 bonus
share issue was not taken into
account.
Received industry accolades
including the Distinguished
Award won by our CEO at the
One Asia Awards 2015.
Operational
Further lateral expansion
to broaden our capabilities
such as offering handyman /
home maintenance services
via ISOHomeCare.com, and
extending specialist A&A and
interior design offerings for the
commercial property segment
through the acquisition of
ISOTeam TMG.
Entered the growing renewable
energy market in Singapore
through our first project to
install solar power panels for
HDB blocks.
Expanded overseas to
Myanmar through a joint
venture partnership with
Nippon Paint (Singapore) in
April 2016 and won our first
painting job there shortly after.
Financial
Posted another outstanding set
of results with revenue and net
attributable profit rising 15.3%
and 13.6% yoy to $94.1 million
and $9.2 million respectively.
Revenue from new segments
C&P and Others rocketed
231.0% and 185.0% yoy to
$11.8 million and $17.8 million
respectively.
Built order book to a record
high of $94.1 million as at 3
August 2016 and pending the
award confirmation of three
other projects worth around
$5.7 million.
25
ISOTEAM LTD.
ANNUAL REPORT 2016
