Shares & Derivatives
Boustead – FY 2008 Financials Review and Discussion Part 2
By Musicwhiz  •  July 17, 2008
By: musicwhiz Segmental and Divisional Review and Analysis The table below shows the breakdown of revenues by business segment, for FY 2008 versus FY 2007. Engineering services formed the bulk of revenues, contributing 83.6% of total revenues. This was not much different from FY 2007 where it took up 81.2% of total revenues. However, the Engineering division saw growth of 31.2% in total revenue, and this is considered decent. Geo-Spatial technology, which involves selling technology systems which optimise resource-finding and are mainly used by government agencies, saw decent revenue growth of 8.7%. This is a cash cow division which brings in a lot of cash but has low growth prospects. I suspect Boustead is using this division to generate the cash to fund the growth of the Engineering Division. As mentioned in the operational review, the Australian business unit saw double-digit growth which was offset by the flat performance from the Asian business units. A further breakdown of Engineering Services reveals some very interesting insights. The rest of the explanations into the increases can be found in the company’s financial statements and press release. I would like to highlight a few things which may not have been mentioned:- Read more... Related Article Boustead – FY 2008 Financials Review and Discussion Part 1
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By Musicwhiz
Musicwhiz who is in his 30s is educated in accounting and works in the investment line (but not in a bank, financial institution, brokerage or fund house). He has a have a full-time job and investing is his side-line as well as passion. Musicwhiz is a value investor and his technique is derived from the teachings of Warren Buffett, Benjamin Graham and Phil Fisher. He incorporate all aspects of their investing style, and modify his value investing style to the Singapore market.

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