Chairman's Message
DEAR SHAREHOLDERS,
Singapore’s construction sector continued to expand during our financial year ended 31 March 2026 (“FY26”), underpinned by sustained public housing and institutional development activity. The Group’s core foundation and geotechnical engineering operations in Singapore capitalised on this to drive an improvement in overall performance year-on-year. This was achieved through higher project activity, disciplined cost management and the benefit of a right-sized equipment fleet that allowed the Group to be more selective of the projects it undertook, with a greater focus on margin quality. Even as construction demand remained robust, cost pressures persist; the ability to prioritise projects that meet the Group’s margin requirements, rather than pursue volume for its own sake, is therefore an important operational discipline for our long-term sustainability.
Group revenue for FY26 grew 18.5% to $400.4 million, compared to $337.8 million in the preceding financial year (“FY25”), mainly due to the higher volume of projects delivered across the public and private sectors. Net profit attributable to shareholders rose 42.9% to $2.7 million, from $1.9 million in FY25. Our financial position has become more robust, while our operating cash flow generation has also improved, as a result of the management’s focus on working capital discipline.
In light of the operational and financial progress, the Board of Directors has proposed a final one-tier tax- exempt cash dividend of 0.037 cents per share, reflecting the Board’s confidence in the strength of the Group’s operations and ability to generate sustainable operating cash flow. The proposed dividend will be put forth for your approval at the upcoming Annual General Meeting on 30 July 2026 and will be paid out on 10 September 2026 if approved. The dividend is higher than the 0.035 cents per share paid out for FY25 and works out to about 46.25% of our FY26 earnings.
OPERATIONAL HIGHLIGHTS
We secured a broad range of contracts in FY26, across infrastructure, residential, industrial, commercial and institutional sectors in Singapore. In particular, we secured a growing proportion of wins in higher-specification private sector work, including pharmaceutical, aerospace and semiconductor-related projects. Such work demonstrates our Group’s technical capabilities and versatility across multiple development types and construction environments.
In Malaysia, we secured opportunities in residential, industrial and institutional construction, including data centre works in Cyberjaya, underscoring the continued relevance of our capabilities to the market. While there had been delays in some projects in Malaysia that weighed on our consolidated margins, we note that the full financial impact of this matter has been recognised in FY26 and that our operations in Malaysia should normalise in the current financial year (“FY27”).
Our results, nevertheless, included factors that partially tempered this operational progress, particularly elevated diesel and raw material prices in the final quarter of FY26, as a result of geopolitical developments. The Singapore Government’s subsequent announcement in April 2026 of cost-sharing arrangements, under which it will co- share half of the incremental diesel and bitumen costs for qualifying public sector projects, should provide meaningful near-term support.
The Group’s equipment sales and leasing business segment recorded revenue growth across multiple markets during the year. The Vietnam market in particular showed a marked increase in activity from a relatively low base, reflecting growing construction demand in the region and the Group’s expanding reach.
Our new service centre which we have been preparing for since FY25, commenced operations in March 2026. Alongside our role as the distributor for a major Chinese foundation equipment manufacturer, we are now positioned to offer the market comprehensive equipment supply, repair, servicing capabilities. The division is expected to progressively ramp up its service centre operations in FY27.
THE YEAR AHEAD
Singapore’s construction pipeline remains substantive. The Building and Construction Authority has forecast total construction demand of S$47 to S$53 billion for 2026, underpinned by public housing, civil infrastructure, and institutional programmes — a pipeline that provides a credible and visible basis for our Group’s near to medium-term activity. The Board is also encouraged by the growing flow of private sector opportunities in pharmaceutical, semiconductor, and aerospace construction, where project specifications favour contractors with established technical credentials.
In Malaysia, construction activity continues to be supported by the government’s 13th Malaysia Plan commitments and growing foreign investment into data centre, healthcare and industrial facilities. This market backdrop supports the continued relevance of our capabilities in the country. With the financial impact of project-specific costs from FY26 fully recognised, we expect Malaysian operations to normalise in FY27.
Our equipment sales and leasing business is entering a new phase, with the service centre established in FY26 expected to broaden the business segment’s revenue streams and extend our service offerings to the construction industry as it scales up in FY27. This is a step towards diversifying our Group’s business.
The Board’s confidence in the Group is grounded in our strengthened financial position and the significant improvement in operating cash generation during the year, as well as in the construction pipeline across both public and private sectors. We are mindful that cost pressures, including labour market tightness and volatility in diesel and construction material prices arising from the current geopolitical tensions in the Middle East, remain features of our operating environment. The discipline in project selection and cost management that has been central to the progress made in FY26 will be equally critical in the year ahead.
APPRECIATION
My fellow Directors and I are grateful for the dedication of the management team and staff throughout the year. The operational progress the Group has made in FY26 is a reflection of their professionalism and commitment.
To our customers, business partners, and bankers, we are grateful for your continued trust and partnership.
Finally, to our shareholders, thank you for standing by the Group. The Board remains committed to working with management to deliver sustainable value for you over the long term.