Boustead

Boustead
Boustead is expected to record a gain of approximately $7.6 million from the Sale of Easycall shares and Cash flow of $9.4 million

Boustead is expected to record a gain of approximately $13.7 million from the Sale of an Industrial property and Cash flow of $27.5 million

Boustead's Order book hits $400 million for the 1st time in the company's history
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1H06 Profit $26.34m
FY06 Profit $36.5m

1H07 Profit $9.6 m
FY07 Profit easily above $40.5 m*

*Conservative assumption that 2H07 profit from on going operations is the same as 1H07, Expect Better 2H07 profits.

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Extracted from Boustead's 1H07 report

Broad-based demand for the Group’s core engineering services and geo-spatial technology is expected to remain strong.

Energy-Related Engineering Division is confident that the strong demand for its engineering services will prevail. An even stronger second half performance is expected given the healthy pipeline of projects secured in 1H FY2007.

The Water Wastewater Engineering Division continues to rebuild its order books and focus on business development efforts. Much of the pipeline of ongoing projects will be recognised in 2H FY2007 and this should improve the Division’s performance for FY2007.

Emphasis will also be placed on exploring opportunities for water and wastewater treatment in the Middle East through Salcon, which was recently appointed as the Anchor Company of the Singapore Water Solutions Alliance by IE Singapore, the Singapore Government’s international trade agency

The Industrial Real Estate Solutions Division is expected to be a major contributor to the Group in 2H FY2007. With the 36.7% acquisition of shares from Minority Interests in Boustead Projects, the Group will be able to recognise a significantly increased net profit contribution from Boustead Projects in 2H FY2007. In addition, the planned sale of an industrial leasehold property is expected to be finalised in 2H FY2007 and will have a positive material impact on revenue and net profit.

Demand for Geo-Spatial Technology is expected to remain firm in Australia and South East Asia. However, the Group plans to modify its business strategy in South East Asia which may affect short term growth but have a significant positive long-term impact.

Currently, Boustead enjoys market exposure in several buoyant industries globally. With favourable conditions and a positive business climate, the order book is expected to grow further and exceed the current level of $285 million. Boustead is optimistic of surpassing the record achievements of FY2006