In Part 2 of this analysis, I will be dissecting and commenting on the business unit performances for Boustead and also the underlying reasons, and to see if there are prospects for each division to improve and sustain its performance moving into FY 2011.
Divisional Revenue Analysis
Sad to say, Engineering Services division saw a dip in revenues from S$438.8 million in FY 2009 to S$360.9 million in FY 2010. A further breakdown shows that this was mainly due to Energy-Related and Real-Estate divisions registering lower revenues year on year. This 17.8% fall can be attributed to a slowdown in orders for these two divisions due to the global financial crisis, and as mentioned in the Group’s press release there was also a timing difference in the recognition of the sale of an industrial leaseback asset worth S$67.8 million which will only be taken in during FY 2011. Read more...