Revenue jumps 41% to S$179.7 million in the same period, on strong contributions from its precast and environmental services divisions

 

INDUSTRIAL group NSL : N02 0% posted a net profit of S$18.9 million for the six-month period ended Dec 31, 2024, a reversal from its net loss of S$25.8 million in the same period in the previous year, as the company had recorded impairment losses amounting to S$32.2 million from an associated company then.

 

For the 12-month period ending Dec 31, 2024, net profit came in at S$21.3 million, which was also a reversal from the net loss of S$18.7 million in the corresponding period the year before, noted the company in a bourse filing on Tuesday (Feb 11).

 

Revenue jumped 41 per cent to S$179.7 million for the six-month period, compared with S$127.3 million in the previous corresponding period, due to strong revenue growth from its precast and environmental services divisions.

 

The company, which makes precast and prefabricated bathroom units among other business activities, recorded a revenue of S$302.7 million for the 12-month period &ndash a 2 per cent increase from S$298.1 million in the previous year.

 

This was due to higher contributions from the environmental services division.

 

While this 12-month period would have normally been the full 2024 fiscal year for NSL, the company had previously announced that it was changing its financial year-end from Dec 31 to Jun 30 to align with its controlling shareholder YTL Cement.

 

This means that the full-year financial results, which will be released later in August this year, will cover an 18-month period between Jan 1, 2024, and Jun 30, 2025.

 

In the 12-month period across 2024, NSL made a goodwill impairment for Parmarine &ndash a manufacturer of prefabricated bathroom units in Nordic countries &ndash amounting to S$4 million due to continued losses and a weak business outlook.

 

A goodwill impairment is made when the value of an asset declines after a company decides to pay more than book value to acquire that asset.

 

This was lower than the impairment losses from goodwill, property, plant and equipment and investment in an associated company of S$35.6 million that the company had recognised in the previous 12-month period in 2023.

On Oct 11, RHB, on behalf of YTL Corp, dispatched the offer document for a mandatory general offer (MGO) for NSL N02 . The offer is at 75 cents per share. The pre-conditional MGO, subject to a condition precedent, had already been announced on July 23. Although the offer price represented a premium of 10.13% to the one-month volume-weighted average price (VWAP), the offer price is a 14.34% discount to the 12-month VWAP of 87.56 cents.

 

NSL is an investment holding company whose principal activities are mainly the manufacturing and sale of building materials, oil and petroleum-related products, and the provision of environmental services. YTL and its concert parties own around 81.24% of NSL, the equivalent of 303.48 million shares. 

 

According to the offer document, the acquisition provides an opportunity for YTL Corp to expand into the industrialised building system sectors in Malaysia, Dubai, Finland and Singapore. The precast concrete businesses in Malaysia and Singapore are synergistic to YTL Corp&rsquo s cement business and are expected to facilitate the speed of construction required in rapidly expanding economic segments such as the data centre industry.

 

YTL Corp has no intention of exercising its right of compulsory acquisition under Section 215(1) of the Companies Act, should such right be available to it, and intends to keep the NSL listed. NSL' s share price closed at 74 cents on Oct 11, down 3.25% this year. 

 

The offer closes at 5.30pm on Nov 8. 

 

INDUSTRIAL group NSL&rsquo s : N02 -4% net profit in the second half (H2) fell by 43 per cent, due primarily to an impairment loss on an investment in an associated company.

 

Net profit for the six months ended Dec 31, 2022 stood at S$4.9 million, down from S$8.5 million in the corresponding period previously. Earnings per share for H2 2022 was 1.30 Singapore cents per share, also down from 2.29 Singapore cents in 2021.

 

NSL booked a S$16.1 million impairment loss on an investment in German lifting-equipment maker Salzgitter Maschinenbau in the second half, it said in a regulatory filing on Thursday (Feb 23).

 

Revenue for the second half of FY2022 rose 45 per cent to S$194.8 million, from S$133.9 million in 2021, thanks to improvements in selling prices and higher project volumes from NSL&rsquo s precast operations in Malaysia and Dubai.

 

The board has proposed a final dividend of 5 Singapore cents per share for H2 2022, unchanged from what was paid out for the same period the year before.

 

For the full year ended Dec 31, 2022, net profit more than doubled to S$10.7 million, and revenue rose 62 per cent to S$369.7 million.

 

&ldquo Performance of the precast business in Singapore, Malaysia and Dubai are expected to be satisfactory on the back of strong order books amid lower margins, barring unforeseen project delays,&rdquo said NSL.

 

INDUSTRIAL group NSL posted earnings of S$5.8 million for the first half ended June, reversing a net loss of S$3.7 million in the year-ago period.

 

Earnings per share rose to S$0.0156 in H1, a turnaround from a loss per share of S$0.0098 in the previous year.

 

The improvement comes on the back of a 39-per-cent increase in group turnover to S$174.9 million, as revenue increased across all its business segments.

 

The increase was led by higher contribution from its Precast & Prefabricated Bathroom Unit (PBU) division, which climbed 45 per cent to S$137.5 million, as a result of improved selling price and higher project volume for precast operations in Malaysia and Dubai.

 

Earnings were also boosted by S$1.3 million in share of profit from an associated company in H1, compared to a share of loss of S$3.5 million in the same period last year.