Chairman's Message
DEAR SHAREHOLDERS,
The financial year ended 31 March 2025 (“FY25”) marked a year of renewed momentum for CSC Holdings. With construction demand in Singapore firming up, we focused on reinforcing our fundamentals, securing quality projects, improving productivity, and tightening cost controls. Our efforts paid off, with a return to profitability, strengthened balance sheet while also positioning ourselves to participate in Singapore’s intensification of infrastructure development in the near future.
Our core geotechnical and foundation engineering business benefitted from a steady pipeline of projects in Singapore that we were able to secure at more sustainable margins. With an active order book and resources at good utilisation, we closed the financial year with a 10.6% rise in revenue to $337.8 million, from $305.3 million in the preceding financial year (“FY24”). We recorded net profit attributable to shareholders of $1.9 million in FY25, reversing from a loss of $20.2 million in FY24. The profit turnaround reflected our disciplined execution, as well as strengthening operating cash flow and financial position.
With the return to profitability, the Board has proposed a final one-tier taxexempt cash dividend of 0.035 cents, for your approval at the forthcoming Annual General Meeting on 30 July 2025. The proposed dividend is a meaningful milestone that reflects our improving fundamentals, appreciation of your continued support and our commitment to shareholder returns. It represents a payout ratio of 70% based on FY2025 earnings.
OPERATIONAL HIGHLIGHTS
Our geotechnical and foundation engineering business delivered steadily, backed by a consistent pool of projects from both the public and private sectors. These included contracts from the Land Transport Authority and Housing & Development Board, in alignment with the Singapore government’s long-term urban infrastructure plans. We ensured that our resources were efficiently deployed, productivity was maintained and execution standards met, even amid a tight labour market.
Conditions in Malaysia were relatively more challenging especially in the second half of FY25, particularly for the bored piling segment and amid a more subdued high-rise residential segment. We responded by refocusing on our competitive niche in jack-in piling, while streamlining our operations in bored piling.
Our equipment sale and leasing business saw healthy demand from both Singapore and India to acquire or lease the foundation equipment from Xuzhou Construction Machinery Group Co., Ltd, which we are the authorised distributor for Singapore and India.
LOOKING AHEAD
Singapore’s construction sector is on a stronger footing today than it was a year ago. The Building and Construction Authority of Singapore (BCA) has projected total construction demand to reach between $47 billion and $53 billion in 2025, an increase of 6% to 20% from $44 billion in 2024. The higher demand is expected to be supported by national and private investments into transport networks, public housing, infrastructure, industrial and biomedical hubs. The number and scale of the projects flowing through will require deep engineering capabilities, extensive experience and reliable execution – these are areas where CSC has proven strengths and track record.
Across the Causeway, we will be looking for viable opportunities amid the Malaysian government’s ongoing commitment to infrastructure and economic development. There should be bright spots in industrial and logistics projects, such as data centres and semiconductor-related facilities, given Malaysia’s goal of positioning as a regional hub for these high-value industries.
On the equipment sale and leasing business front, the strong construction demand in Singapore is expected to support demand for the foundation equipment that we distribute. We are now laying the groundwork to expand our value-add, to offer repair and maintenance services for foundation equipment, especially for China-made brands that are widely used here.
While our proactivity and competitive advantages will stand us in good stead, we remain mindful of cost challenges from rising foreign worker levies, wage inflation, and the potential impact of geopolitical developments on material and energy prices. Competition, especially from foreign foundation contractors, is expected to intensify. We must continue to stay costcompetitive, build capabilities and innovate for efficiency. For example, we are trialling battery-powered piling equipment, which could offer operational and sustainability benefits over time. Our commercial paper programme has also given us flexibility to manage working capital and invest in equipment fleet renewal while maintaining financial resilience. This will greatly support us in maintaining our tendering capacity with the BCA and aligning with evolving accreditation requirements.
As the construction sector evolves, our priorities are clear: stay competitive, deepen on core capabilities and retain our talent and skilled workforce, while maintaining operational and financial discipline.
APPRECIATION
My fellow Directors and I are heartened by the strong showing put up by the CSC team in the past year, whose commitment and hard work enabled us to respond decisively to opportunities and challenges. We look forward to working with the management team to continue driving the Group’s growth.
My thanks to my fellow Directors for your unstinting guidance and counsel. I am also pleased to welcome Dr Steve Lai Mun Fook, who joined us as an Independent Director from 1 August 2024. Dr Lai brings with him deep leadership experience in standards, technology and education, having held senior roles in PSB Academy, TUV SUD PSB and the Singapore Productivity & Standards Board, and we look forward to his counsel.
On behalf of the Board and everyone at CSC, we thank all our shareholders, customers, business partners and associates who have given us your faith and support.