Tiong Seng has reversed into earnings of $3.5 million for the 2HFY2023 ended Dec 31, 2023, compared to the loss of $40.7 million in the corresponding period the year before. The earnings was due to higher revenue and lower operating expenses.

 

Revenue for the 2HFY2023 grew by 52% y-o-y to $314.4 million on higher revenue from construction contracts and engineering solutions and higher rental income. This was, however, offset by lower revenue from sales of development properties. The higher revenue from construction contracts and engineering solutions was due to the resumption of construction work.

 

Meanwhile earnings for the FY2023 still stood at a loss of $12.1 million, although this is an 86% improvement from the loss of $84.7 million in the FY2022.

 

FY2023 revenue rose by 34% y-o-y to $475.0 million as the increases in revenue from construction contracts and engineering solutions and rental income more than offset the decrease in revenue from sales of development properties

 

Earnings per share (EPS) for the 2HFY2023 and FY2023 stood at 0.80 cents and a loss of 2.75 cents respectively.

 

As at Dec 31, 2023, Tiong Seng has $41.4 million worth of assets held for sale. The bulk of it is expected to be sold in FY2024.

 

&ldquo These capital recycling efforts will provide additional liquidity to boost the group&rsquo s balance sheet status and allow Tiong Seng to pursue and complete new projects,&rdquo says the group in its Feb 28 statement.

 

As at Dec 31, 2023, cash and cash equivalents stood at $112.6 million.

 

&ldquo We are optimistic about the future, with the group turning profitable in 2HFY2023. This is due to the collective efforts of every member of the Tiong Seng family focusing on cost reduction while concurrently enhancing operational efficiency. As we come to the tail-end of loss-making projects that have hampered the group&rsquo s performance over the last three years, Tiong Seng is now in a strong position to actively pursue new projects where we have a competitive advantage,&rdquo says Pay Sim Tee, CEO of Tiong Seng Holdings BFI -4.62% .

 

&ldquo Our intention to actively divest non-core assets to strengthen our balance sheet highlights the determination of the group to overcome these challenging times and emerge stronger and more resilient from the industry down cycle.&rdquo

 

" Moving forward, we stand at a pivotal point in our transformation journey, poised to return to steady growth in 2024. Having emerged stronger from navigating a myriad of challenges, we remain cautiously optimistic about our prospects in the year ahead,&rdquo he adds.

SINGAPORE - Construction group Tiong Seng Holdings has lodged a police report against the former managing director of its subsidiary, Robin Village Development (RVD), Michael Seah and his wife, Neo Kim Neo.

 

In a bourse filing on Tuesday, the company said that it conducted an internal investigation into the couple after it received a whistleblower report about Mr Seah&rsquo s conduct.

 

It found that Mr Seah and Ms Neo, who served as RVD&rsquo s head of human resources and administration, had allegedly diverted business and profits to SW Metal & Construction, a company owned and controlled by their daughter.

 

Tiong Seng also discovered that Mr Seah and Ms Neo had allegedly wrongfully utilised RVD&rsquo s resources for personal gain, and to benefit SW Metal & Construction.

 

The company added that a preliminary estimate from the internal investigation puts the potential loss to RVD at approximately $3 million.

 

Aside from filing a police report on Aug 4, RVD has also instructed its lawyers to pursue claims and commence legal proceedings against Mr Seah, Ms Neo, their daughters and SW Metal & Construction for losses and damages arising from the alleged wrongdoing.

 

Mr Seah stepped down as managing director on Sept 12, 2022, and remained as a technical adviser to RVD until March 25 this year.

CONSTRUCTION group Tiong Seng : BFI 0% on Thursday (Dec 22) announced that it has obtained a temporary occupation permit (TOP) for its residential project, Sloane Residences, and has sold close to 90 per cent of the units.

 

The property has seen a &ldquo sharp uptick&rdquo in buyer interest since achieving TOP on Nov 18, selling eight units within four weeks, said the mainboard-listed company.

 

Prices of the units sold ranged between S$2,677 and S$3,366 per square foot (psf), with an average overall selling price of S$2,907 psf. Singaporeans made up 54 per cent of the buyers, while permanent residents and foreigners accounted for the remaining 46 per cent.

 

Sloane Residences is a 12-storey freehold condominium located at 17 Balmoral Road in Singapore&rsquo s prime District 10. It is a joint venture between Tiong Seng and Ocean Sky International, with the former holding a 60 per cent stake.

 

The project is located close to Bukit Timah Road, Stevens Road and Orchard Road, and is a 10-minute walk to both Stevens MRT and Newton MRT stations. There are several malls, restaurants and schools nearby.

 

&ldquo We are pleased with the strong response received for Sloane Residences... Despite the difficult challenges of Covid-19 that has adversely affected the construction industry, we have continually strived to ensure consistent quality construction and thoughtful design for this project,&rdquo said Pek Zhi Kai, executive director for Tiong Seng.

 

&ldquo We will continue unrelentingly to deliver... all of our current projects, and look forward to procuring more projects in the new year,&rdquo he added.

 

Construction group Tiong Seng announced that it has made a loss of $44.0 million for the 1HFY2022 ended June period, compared to earnings of $1.4 million in the same period a year ago. The group has attributed its loss to rising labour, material and subcontracting costs.

 

Alongside the group' s loss in this period, its revenue has declined by 16.8% y-o-y to $148.7 million, mainly due to a decrease in construction work for the engineering solutions segment for finished products such as mass engineered timber and prefabricated prefinished volumetric construction (PPVC), as well as a reversal of over-recognised revenue from the engineering solutions segment of approximately $8.0 million in aggregate from the prior reporting periods.

 

The group noted that the flow of labour remained restrictive until the entry requirements were streamlined in June this year, this allowed it to access more workers in 2QFY2022 compared to the previous quarter.

 

The shortage of labour contributed to the slower progress of construction activities and lower revenue. The bright side is construction activities started to pick up in 2QFY2022, especially with the easing of labor shortages since June, the group' s construction revenue has increased by $37.8 million to $118.1 million, as compared to 2HFY2021.

 

With the fall in revenue, a net loss was recorded due to a higher cost of construction contracts and engineering solutions, coupled with provisions made during the period for $17.5 million. Cost of construction contracts and engineering solutions relative to revenue increased to 118.4% from 92.7% in 1HFY2021 due to higher labour, material and subcontracting costs.

 

Provisions were largely for onerous contracts secured pre-Covid, where costs had increased past the prices considered at contract dates These pre-Covid-19 projects were hence doubly affected as supply chains issues before 2022 were not fully resolved and disruptions from the geopolitical crisis early this year further increase the costs.

 

On the other hand, other expenses increased significantly to $10.5 million from $4.0 million a year ago, mainly due to provision of impairment on contract assets of $5.0 million as well as higher repair and maintenance and operating lease expenses.

 

Against this backdrop, the group reported a loss.

 

As at end-June, the group' s cash and cash equivalents stood at $67.4 million.

 

On the outlook, the group is concerned about current geopolitical issues, the slow recovery of the construction sector, the price in raw material prices, as well as inflation. While labour is still an issue, the group notes that productivity is increasing as workers acclimatise back to the pace of work and skill levels required.

 

Moving forward, the group will continue to bid for suitable contracts while monitoring prices of materials and labour.

 

TIONG Seng : BFI 0% has agreed to acquire 51 per cent of electrical and mechanical engineering works provider, AMP Systems, for a consideration of S$3.3 million.

 

While the acquisition will result in a S$140,000 net loss attributable to Tiong Seng, the construction group said its board believes the transaction will benefit the group by allowing it to capitalise upon AMP&rsquo s existing business.

 

The deal will also further augment Tiong Seng&rsquo s technical and technological competencies while opening its construction arm to new green and sustainability opportunities in the built environment, said the group in a bourse filing on Monday (Jul 4).

 

Tiong Seng&rsquo s acquisition of AMP will comprise a 20 per cent purchase of vendor shares from an existing AMP shareholder, and a capital injection to subscribe for new shares to be issued by AMP to complete the group&rsquo s 51 per cent stake in the company.

 

Had the acquisition taken place in FY2021, the group&rsquo s net tangible assets per share would have been 43.76 Singapore cents instead of 43.81 cents. Pro-forma earnings per share would remain unchanged at 11.37 cents.

 

Tiong Seng Holdings&rsquo wholly-owned subsidiary Tiong Seng Contractors has been awarded a contract by the Ministry of Culture, Community and Youth worth $192.3 million on Dec 10.

 

The contract is for the construction, completion and maintenance of the works for the development of an Outward Bound Singapore (OBS) Campus at Coney Island and Lorong Halus (Punggol Planning Area), Singapore.

 

The possession of the site is expected to take place in December 2020. The contract is not expected to have any material impact on the net tangible assets and earnings per share of the group for the financial year ending Dec 31.