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Soilbuild Construction wins S$28.3m HDB contract

03 January 19 | The Business Times


SOILBUILD Construction Group has clinched a S$28.3 million contract by the Housing & Development Board (HDB).

The projects involve the design and upgrading works for various housing blocks at Serangoon Ave 4 and Bedok Reservoir Road over a 20 month period.

The contract is not expected to have a material impact on the net tangible assets and earnings per share of the group for the current financial year ending Dec 31, 2019.

In a separate release submitted by Soilbuild Construction's executive chairman, Lim Chap Huat, the company said that Chooi Yue Chiong, 55, has stepped down as director of design and is planning to assume a new role in Soilbuild Group Holdings, a sister company led by Mr Lim.

Mr Chooi has been involved in the construction design, specifications and drawings in the group's construction projects since Jan 1, 2013, with the objective of deriving "costs savings through improvement in construction method, sequence and material use". He holds 130,000 Soilbuild Construction shares.

In another release, the company announced that Ho Toon Bah, 55, has stepped down as executive director to "pursue his personal interest". Mr Ho will be redesignated as non-independent and non-executive director of the company.

"In his new role, Mr Ho will continue to provide his advice on the group's strategic development and his input on various operation and resource matters,'' Mr Lim said. Mr Ho holds more than 11 million Soilbuild Construction shares and about 2.6 million warrants.

For the third quarter ended Sept 30, 2018, Soilbuild Construction returned to the black, with S$100,000 in net profits, from a restated net loss of S$6.3 million a year ago. Revenue was up 35 per cent to S$46.5 million, comprising mainly revenue from three industrial projects in Singapore and two residential projects in Myanmar. Current liabilities, amounting to S$104.1 million, exceeded its current assets, amounting to S$77.9 million, by S$26.2 million due mainly to the increase in short term borrowings. Subsequently, the group secured a long term loan of S$50 million from a local bank.

Looking ahead, the group expects the demand for construction activities in the local market to remain competitive and tendering environment to stay challenging. It plans to continue to focus on tenders for more new construction projects in Singapore and Myanmar, as well as to secure more supply contracts for precast components.

At at end Sept 2018, its order book stood at S$323.6 million, comprising S$164.8 million from local construction projects and S$158.8 million from Myanmar projects. Soilbuild Construction ended at S$0.092 a share, down S$0.003 from its previous close.