Nordic Group has reported earnings of $17.5 million for the FY2024 ended Dec 31, 2024, up 10% y-o-y. Earnings for the 2HFY2024 came in 53% y-o-y higher at $9.0 million.

 

Earnings per share for FY2024 came in at 4.4 cents per share, up 10% y-o-y. 

 

Revenue for FY2024 was 1% y-o-y lower at $158.4 million, but grew 15% y-o-y in 2HFY2024 to $82.2 million.

 

The group, which provides project and maintenance services to the marine, offshore oil and gas, petrochemical industries among others, says that the higher revenue for 2HFY2024 was driven by strong recovery in project services in Singapore and Malaysia. This follows the orderbook replenishment in 1HFY2024.

 

The group&rsquo s revenue for maintenance services remained relatively the same y-o-y. 

 

Overall, this revenue growth translated into a 33% growth in gross profits and a 3.1 percentage points (ppts) increase in gross profit margin for 2HFY2024. 

 

Other income and gains dropped by 57% y-o-y to around $1.8 million in 2HFY2024, mainly due to a one off write-back of contingent liabilities arising from the acquisition of Starburst Group and property disposal gains recorded in 2HFY2023. 

 

The foreign exchange gains of $1.0 million in 2HFY2024 and increase in interest income of $0.2 million partially offset this decrease.

 

Distribution costs increased 72% y-o-y in 2HFy2024 due to higher overall salary costs. Meanwhile, effective income tax dropped due to the utilisation of merger & acquisition allowance, unutilised capital allowances carried forward and over recognition of income tax expense. 

 

The group&rsquo s 1% y-o-y decline in revenue was due to the completion of certain project and the delay in other projects in Singapore and Malaysia. This was offset by steady growth in maintenance services throughout the year and a strong rebound in project services in 2HFY2024, following the successful orderbook replenishment in 1HFY2024.

 

The board is recommending a final dividend of 0.8987 cents per ordinary share. Together with the interim dividend of 0.8526 cent already paid, the group&rsquo s total dividend for FY2024 sums up to 1.7513 cents, equivalent to a dividend payout ratio of 40% and a dividend yield of 5%.

 

The group holds an orderbook amounting to $201.6 million as at Dec 31, 2024, and has prioritised the acquisition of more maintenance contracts to increase the recurring portion of its revenue which is reflected in its maintenance services business which contributes 58% to the orderbook.

The bulk of it comes from contracts secured by its system integration division and its cleanroom, air and water engineering solutions division

PRECISION engineering and systems integration solutions provider Nordic Group : MR7 -1.39% on Thursday (Dec 12) announced that it clinched several contracts with a total value of around S$22.9 million. 

 

The contracts are with new and repeat customers across the marine, offshore oil and gas, petrochemical, semiconductor, infrastructure and security sectors. 

 

The bulk of the S$22.9 million comes from contracts secured by its system integration division and its cleanroom, air and water engineering solutions division. 

 

Its system integration division clinched around S$6.7 million worth of contracts for manufacturing as well as electrical and instrumental works. 

 

Meanwhile, its cleanroom, air and water engineering solutions division bagged around S$7 million worth of contracts for ad-hoc, maintenance and hook-up services. 

 

The rest of its contracts were secured by the precision engineering, scaffolding and insulation, petrochemical and environmental engineering, and structural engineering and construction services divisions. 

 

The contracts are not expected to have material impact on Nordic Group&rsquo s consolidated net tangible assets per share and earnings per share for the current financial year. 

The bulk of it comes from contracts secured by its system integration division and its cleanroom, air and water engineering solutions division

PRECISION engineering and systems integration solutions provider Nordic Group : MR7 -1.39% on Thursday (Dec 12) announced that it clinched several contracts with a total value of around S$22.9 million. 

 

The contracts are with new and repeat customers across the marine, offshore oil and gas, petrochemical, semiconductor, infrastructure and security sectors. 

 

The bulk of the S$22.9 million comes from contracts secured by its system integration division and its cleanroom, air and water engineering solutions division. 

 

Its system integration division clinched around S$6.7 million worth of contracts for manufacturing as well as electrical and instrumental works. 

 

Meanwhile, its cleanroom, air and water engineering solutions division bagged around S$7 million worth of contracts for ad-hoc, maintenance and hook-up services. 

 

The rest of its contracts were secured by the precision engineering, scaffolding and insulation, petrochemical and environmental engineering, and structural engineering and construction services divisions. 

 

The contracts are not expected to have material impact on Nordic Group&rsquo s consolidated net tangible assets per share and earnings per share for the current financial year. 

 

Nordic Group has announced yet another acquisition, as part of its ongoing bid to diversify its earnings base.

 

The company on Dec 11 announced plans to pay $5 million for Avon Industries, which is in the business of designing and building fuel dispensing systems in commercial and military airports.

 

The acquisition is a chance for Nordic, led by executive chairman Chang Yeh Hong, to extend its suite of operation and maintenance services to government agencies. 

 

The deal will also help bring about synergies as Nordic' s existing products and services, such as electrical and instrumentation services as well as fabrication, scaffolding and insulation services, could support Avon&rsquo s business.

 

Meanwhile, Nordic can also help cross-sell Avon&rsquo s products and services to its existing customers, including those in the process industry.

 

As at Sept 30 2022, Avon had a net tangible asset of $5.1 million.

 

Acquisitions made by Nordic in recent years include Multiheight in 2011, Austin Energy in 2015, Ensure Engineering in 2017, Envipure in 2019 and Starburst and Eratech in 2022.

 

Separately, in its business update for the quarter ended Sept 30, Nordic reported earnings of $13.6 million for 9MFY2023 ended Sept 30, down 18% y-o-y. Revenue in the same period ended March was up 8% to $128.8 million, says the company in a business update on Dec 11.

 

For the three months, the company reported a net margin of 11%, down 3 percentage points y-o-y.

 

In the quarter, Nordic won contracts worth $36.6 million, bringing its order book to $187.9 million as at Sept 30. The company provides a range of engineering and maintenance services to various clients.

 

Recurring revenue in the form of maintenance work now makes up a bigger share of the company&rsquo s turnover, versus lumpier project-based jobs.

Nordic Group has won new contracts worth $40.8 million, including from repeat customers in the marine, offshore oil and gas, petrochemical, semiconductor, infrastructure and security industries sectors.

 

In a separate announcement, the company announced the sale of a factory and warehouse at 24 Benoi Place for $3.5 million.

 

The property, deemed non-core, occupies a land area of 39,000 sq ft and has a remaining lease of 19 years.

 

The property was held on its books at $2.5 million as at June 30.

 

Nordic plans to use proceeds to pare down debt.

 

RATIONALE FOR THE DISPOSAL AND USE OF PROCEEDS The Property is not a core asset of the Group. The proceeds arising from the Proposed Disposal would be used to repay current bank borrowings and improve the Group&rsquo s overall cash position and reduce finance costs. 

https://links.sgx.com/1.0.0/corporate-announcements/802CV5NK46FYORUB/e9a6b0c98a943e26150ce637caac2c0a4bc2de0d45ed681c6f40580c7055f71d

 

Nordic Group reported earnings of $5.8 million for 1QFY2023, up 11% y-o-y. Revenue in the same period ended March was up 15% to $46.2 million, says the company in a business update on June 27.

 

For the three months, the company, led by executive chairman Chang Yeh Hong, was able to maintain its net margins at 13%.

 

As at March 31, the company has built up an order book of $205.2 million. Out of which, orders for maintenance work, which gives better revenue stability, constituted $134.4 million, or around two-thirds of the total. The smaller proportion came from project-based orders, which are typically lumpier in nature.

 

Over the years, the company has been actively diversifying its customer base, so as to reduce industry-specific risk. It did so via a series of acquisitions.