SIA Engineering Group reports healthy half-year results with increased revenue and profit

SIA Engineering Group (SIAEC) has released its half-year results, indicating a robust demand for maintenance, repair and overhaul (MRO) services in the first half of the financial year ending 30 September 2024. All operating segments achieved higher revenue. Group revenue rose by 12.1% year-on-year to SGD576.2 million, while Group expenditure increased at a slightly lower rate of 11.5% to SGD572.8 million. The rise in expenditure was primarily attributed to higher material, manpower, and repair costs, along with an exchange loss in contrast to an exchange gain in the comparative period. As a result, the Group's operating performance improved by SGD3.3 million year-on-year, leading to an operating profit of SGD3.4 million. The share of profits from associated and joint venture companies also saw an increase of SGD8.6 million (+17.2%) year-on-year, reaching SGD58.6 million.

Contributions by segment were as follows: Engine and component segment: SGD56.2 million (+SGD7.7 million),

Airframe and line maintenance segment: SGD2.4 million (+SGD0.9 million).

The Group's net profit for the half-year ending September 30, 2024 was SGD68.8 million, a year-on-year improvement of SGD9.5 million. Basic earnings per share for the period were 6.13 cents. As of September 30, 2024, equity attributable to owners of the parent stood at SGD1,647.4 million, down SGD39.7 million (-2.4%) from March 31, 2024. This decline was mainly due to the final dividend payment for the previous financial year and a decrease in the foreign currency translation reserve, partially offset by profits earned during the period.

Total assets amounted to SGD2,014.1 million as of September 30, 2024, a decrease of SGD74.2 million (-3.6%) from 31 March 2024, largely due to a decline in cash balances, partially offset by an increase in receivables. The Group's cash balance was SGD493.2 million. Net asset value per share as of September 30, 2024, was 147.0 cents. (US$1.00 = SGD1.32 at time of publication).