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10 Things to Know About ISOTeam Ltd’s Latest Earnings

On Friday, ISOTeam Ltd (SGX: 5WF), which is mainly involved in building maintenance and estate upgrading in Singapore, announced its financial results for the first quarter ended 30 September 2017. The reporting period was from 1 July 2017 to 30 September 2017.

Here are 10 things investors should know from the earnings announcement:

1. Revenue for the quarter rose 20.9% year-on-year to S$25.1 million.

2. All business segments performed well, except the Coating & Painting (C&P) division. This division saw its revenue fall 32.5% year-on-year to S$2.9 million.

Revenue from Repairs & Redecoration (R&R) surged 62.7% to S$7.4 million while Addition & Alteration (A&A) revenue grew 34.9% to S$10.2 million. The Others division posted a revenue growth of 5.9% to S$4.6 million.

3. Since the cost of sales increased more than revenue, gross profit margin for the quarter was 17.7%, down from 22.5% a year ago.

4. Net profit ballooned 54.6% to S$1.5 million.

5. The net profit margin rose 1.3 percentage points to 6%.

6. Basic and diluted earnings per share for the quarter was 0.53 Singapore cents, up from 0.34 cents a year ago.

7. The balance sheet strengthened for the latest period. As of 30 September 2017, ISOTeam had S$22.9 million in cash and cash equivalents, and S$23.4 million in total debt. This translates to a net debt position of S$0.5 million. In comparison, at the end of June 2017, it had a net debt of S$3.3 million.

8. Cash flow from operations for the quarter vastly improved to S$3.6 million versus last year’s figure of negative S$0.8 million. With capital expenditure at S$0.87 million in the latest quarter, the firm generated a free cash flow of S$2.8 million.

9. Executive chairman and chief executive officer, Anthony Koh, said: “Moving forward, we intend to build on the momentum of our first quarter achievements and focus on increasing efficiencies within the Group, while looking to extract synergies from our recent acquisitions, investments and joint ventures”.

He added: “With signs of improving economic conditions, we are also optimistic that more C&P projects will come up for tender soon and the segment is expected to recover after 1Q2018”.

10. As of 27 October 2017, ISOTeam’s order book was at S$87.2 million, which will be progressively delivered over the next two years.

Shares of the firm are now going at S$0.355. This translates to a trailing price-to-earnings ratio of 14.4 and a dividend yield of 1.8%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P owns shares of ISOTeam Ltd.