BBR Holdings (S) Ltd, a diversified company listed on the Singapore Exchange (SGX), has reported exceptional financial results for FY2024, with net profit soaring from S$7.9 million in FY2023 to S$19.9 million – a significant increase of 151%. In recognition of this strong performance, the company has declared a dividend of 0.3 cent per share for shareholders.
BBR Holdings is one of Singapore’s leading construction and specialised engineering groups
The impressive profit growth was supported by a robust revenue of S$289.5 million for FY2024, representing a significant increase of S$52.2 million or 22% from S$237.3 million in FY2023. This was complemented by a 7% rise in gross profit, which increased by S$2.6 million year-on-year.
A substantial contributor to the Group's performance was other income of S$27.8 million, which comprised primarily of a S$7.0 million gain from the disposal of a subsidiary in Thailand and a provisional bargain purchase (negative goodwill) of S$19.8 million arising from the acquisition of the accommodation business. The final accounting for this acquisition is still in progress.
The Group's financial position continues to strengthen, with cash holdings reaching S$78.6 million as of December 31, 2024, up by S$21.7 million from the S$56.9 million reported at the end of the previous financial year.
General Construction and Specialised Engineering
Revenue growth was recorded across most business segments, with the General Construction segment showing particularly strong performance driven by increased construction activities across ongoing projects. This aligns with Singapore's broader economic expansion, where the construction sector grew by 4.5% in 2024, following a 5.8% expansion in 2023.
The Specialised Engineering segment, encompassing post-tensioning, bored piling, and Prefabricated Prefinished Volumetric Construction (PPVC), also registered overall growth. While post-tensioning operations in Thailand experienced reduced activities and PPVC faced a shortage of sizable projects, these declines were more than offset by significant improvements in the bored piling business.
As of 31 December 2024, BBR Holdings maintains a substantial construction order book of approximately S$259 million, positioning the company to benefit from Singapore's projected construction demand of S$35 to S$39 billion in 2025 – a figure exceeding pre-COVID levels.
Strategic Expansion into Accommodation Business
A key driver of growth in FY2024 was the Group's strategic expansion into the Accommodation Business segment, which contributed S$20.4 million in additional revenue. This segment continues to generate recurring rental income, with the Group actively exploring further business opportunities in this area.
Artist impression of LINQ@ Beauty World in the vicinity
Property Development
The Property Development segment saw a reduction in revenue contribution from The LINQ@ Beauty World, a 20-storey mixed development along Upper Bukit Timah Road, which successfully obtained its Temporary Occupation Permit (TOP) in November 2024, marking the substantial completion of the project. Segment revenue decreased from S$112.3 million for FY2023 to S$34.6 million for FY2024, reflecting the project’s progression towards completion.
The Group is now working closely with appointed real estate agents to strengthen marketing efforts for leasing the two-storey retail podium with 53 strata-titled units at The LINQ.
BBR Holdings' strong performance comes amid resilient demand. The Building and Construction Authority projects total construction demand for 2025 to exceed pre-COVID-19 levels, underpinned by several large-scale developments including Changi Airport Terminal 5 and the Marina Bay Sands Integrated Resort expansion, alongside public housing developments and upgrading works.
Despite this positive outlook, the Group acknowledges the challenges of intense competition, an inflationary cost environment, and shortages in foreign labour supply. In response, BBR Holdings remains vigilant in managing project costs and operating expenses while focusing on executing its substantial order book efficiently.
In the property development segment, the Group is taking a prudent approach in evaluating future opportunities, particularly as the Urban Redevelopment Authority reports that the overall private residential property price index increased at a slower pace of 3.9% for 2024, compared to 6.8% in 2023 and 8.6% in 2022.
BBR Greentech Pte Ltd consist of system integration and distribution of renewable energy
With its strong cash position of S$78.6 million and diversified business model spanning construction, property development, specialised engineering, green technology, and accommodation services, BBR Holdings is well-positioned to navigate market fluctuations and capitalise on emerging opportunities across Singapore's dynamic infrastructure and development landscape.
The significant 151% increase in net profit, strategic acquisitions and disposals, and the declared dividend of 0.3 cent per share demonstrate BBR Holdings' operational efficiency, effective management strategies, and commitment to shareholder returns, making it an attractive consideration for investors seeking exposure to Singapore's construction and property sectors.
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