R&R project at Punggol.
OPERATING AND
FINANCIAL REVIEW
(CONT'D)
As at 30 June 2016, our A&A orders
remain healthy with eight projects
on our book which are expected to
complete between now and June
2018. Among these are two Hawker
Centres Upgrading Programme
(
“HUP”
) projects at Jurong East Ave
1 and Ang Mo Kio Ave 10. In addition,
the Group is also the lowest
tenderer for two HUP projects at
Tiong Bahru and Taman Jurong.
See Table 4.
Moreover, we have been invited to
take part in four tenders for HDB’s
Home Improvement Programme
(
“HIP”
) since end 2015 and plan to
ramp up our participation in this area
in the coming year.
C&P
Under our C&P segment, we provide
specialist coatings such as eco-friendly
coating, architectural and protective
coating, fireproofing coating, industrial
coating as well as new-build painting
for the private sector.
C&P was our fastest-growing
business segment last year and we
completed 13 C&P projects over the
course of FY2016 including coatings
work for Yishun Community
Hospital and Mapletree Business
City 2. See Table 5.
We have around 33 projects in hand
as at 30 June 2016 with completion
deadlines ranging from now until
February 2018. These contracts
from industrial, commercial to
residential sectors include coating
jobs for prominent buildings and
landmarks such as Tanjong Pagar
Centre, National Art Gallery and
Tampines Town Hub among others.
See Table 6.
We will continue to work closely
with our paint manufacturer partners
to grow our commercial painting
and repainting jobs. At the same
time, we are also setting up a special
coating division to focus on high
performance coatings relating to
floor, fireproofing and waterproofing
which we believe will yield better
margins for the Group given the
higher value work involved.
Others
The Others segment, which was our
second fastest-growing segment
after C&P last year, comprise all the
other services that the Group offers
such as commercial interior designs,
home retrofitting; landscaping;
leasing of access provision
equipment; waterproofing and
eco-friendly solutions.
Signaling the traction the Group
has gained for these services, 12
major projects were completed in
FY2016 compared to just two in
FY2015 and we have an additional
11 key projects currently ongoing.
See Tables 7 and 8.
Commercial/Home interior design
and retrofitting (collectively “ID”)
We offer these services to
residential, commercial and
industrial properties and in FY2016,
the Group successfully expanded
both our team and foothold in
this area. We completed nine key
ID projects for a wide array of
businesses from hotels and offices
to retail shops and restaurants in
FY2016 compared to two in FY2015.
Currently, the Group is carrying
out our largest ever ID contract,
Aloha Changi Chalet, which is worth
around $11.9 million. We are also
in the process of extending our ID
services to Malaysia and have plans
to establish a joint venture company
to provide interior fitting-out services
to reputable developers in the country.
Landscaping (“LS”)
Demand for our landscaping
services has been going strong since
we acquired this business in October
2014. We completed a substantial
portion of the Punggol Waterway
Floating Wetlands and Teban Garden
projects in the public sector.
26
ISOTEAM LTD.
ANNUAL REPORT 2016
