CHAIRMAN’S AND CEO’S MESSAGE
Dear Shareholders,
We are pleased to present the Annual Report of BBR Holdings (S) Limited (“BBR”, the “Company” or with its subsidiaries, the “Group”) for the financial year ended 31 December 2024 (“FY2024”), a year marked by growth and strategic advancement.
FY2024 delivered good results, with Group revenue increasing 22.0% from S$237.3 million for FY2023 to S$289.5 million for FY2024. Bottom line, profit attributable to equity holders rose by 231.4% from S$6.4 million for FY2023 to S$21.1 million for FY2024, driving Earnings Per Share from 1.98 cents for FY2023 to 6.55 cents for FY2024.
The Group’s financial position improved considerably during the year. As at 31 December 2024, Net Asset Value Per Share increased to 38.97 cents from 32.62 cents as at 31 December 2023 and Net Debt to Equity was 13.9% as at 31 December 2024 compared to 41.1% as at 31 December 2023. Our liquidity position is strong, with S$53.1 million in net cash generated from operating activities and healthy cash holdings of S$76.4 million, providing us with a solid foundation to pursue strategic opportunities.
At its core, BBR is focused on Building Beyond Resilience. It reflects not only our core business of creating enduring physical structures but also our Group’s commitment to grow beyond our established foundations to capture new opportunities, building a diversified organisation that can adapt and thrive through changing market conditions.
Business and Geographical Segments
The stellar results achieved for FY2024 reflect the success of the Group’s long-term effort to diversify its revenue base across complementary business segments.
Revenue from the General Construction business segment more than tripled from S$51.3 million for FY2023 to S$157.5 million for FY2024 due to increased construction activities from the active ongoing projects.
Revenue from the Specialised Engineering segment, comprising post-tensioning, bored piling and Prefabricated Prefinished Volumetric Construction (“PPVC”), increased from S$69.1 million for FY2023 to S$71.5 million for FY2024.
Revenue from the Green Technology business segment increased by 21.6% from S$4.6 million for FY2023 to S$5.6 million for FY2024.
The Group consolidated the results of the newly acquired accommodation business, which contributed S$20.4 million in revenue for FY2024, further enhancing the Group’s diversified revenue base.
For the Property Development business segment, revenue from The LINQ @ Beauty World (“The LINQ”) decreased by S$77.7 million to S$34.6 million for FY2024, reflecting the project’s progression towards completion. The LINQ obtained its Temporary Occupation Permit (“TOP”) in November 2024, further reinforcing the Group’s reputation as a boutique developer of premium properties.
Singapore continues to retain its position as the dominant market for the Group’s business accounting for 91.5% of Group revenue, followed by Malaysia with 6.6% and Thailand with 1.9%.
After careful consideration, the Board made the strategic decision to dispose its 49% stake in Siam BBR Systems Co., Ltd. (“Siam BBR”), which provides structural engineering and design-build services in Thailand (“Disposal”). Siam BBR had been in a net liability position since FY2021, with its contribution to revenue declining. In FY2024, the Group had lower revenue contribution from Thailand due to the reduced construction activities for post-tensioning works.
This strategic Disposal allowed the Group to exit the Thai market, where we had faced difficulties to establish a significant presence and achieve market penetration. The Disposal enables us to reallocate our financial and capital resources toward expanding our core businesses in our key market of Singapore, where we maintain a strong position. By optimising our portfolio in this manner, we are positioning the Group to pursue more promising growth opportunities and strengthen our overall financial position.
The Singapore Economy and the Construction Industry
The Singapore economy grew by 4.4% in 2024, a significant improvement from 1.8% in 2023, with the Ministry of Trade and Industry projecting continued growth of 1% to 3% for 2025. The construction sector expanded by 4.5% in 2024, building on its 5.8% growth in 2023, supported by robust activities across both public and private sectors.
According to the Building and Construction Authority (“BCA”), construction demand for 2025 is expected to exceed pre-COVID levels, ranging between S$35 billion and S$39 billion. This strong outlook is driven by major projects including Changi Airport Terminal 5, the Marina Bay Sands expansion, public housing developments, and critical infrastructure works such as the Thomson-East Coast Line Extension and Tuas Port.
The medium-term forecast is equally promising, with BCA projecting an average annual construction demand of S$39 billion to S$46 billion from 2026 to 2029. While this outlook presents significant opportunities for the Group, we remain mindful that project schedules may fluctuate due to global economic uncertainties, and that industry demand might moderate after the completion of exceptional projects like Terminal 5.
Given these long-term industry dynamics, the Group’s strategy to diversify its revenue streams across complementary business segments remains crucial for sustainable growth and resilience against potential market fluctuations.
Outlook for the Year Ahead
The global economic outlook remains clouded by significant uncertainties, downside risks and external headwinds. Traditional geopolitical partnerships and trade relationships are undergoing significant realignment amid shifting power dynamics and competing national interests, the trajectory of which depends mainly on the policies of the new US Administration.
These ongoing trade tensions between major economies and potential escalation of geopolitical conflicts could dampen global investment and trade, weighing on overall growth. Furthermore, disruptions to the downward trend of global inflation may result in prolonged tighter financial conditions.
While inflationary pressures may have peaked, the cost of financing and the price of construction materials remain high. Additionally, the construction industry in Singapore faces intense competition and manpower supply constraints.
In response to these challenges, the Group will continue to maintain strict cost management protocols and financial discipline across all its operations to build organisational resilience. We will leverage our established track record in building construction and specialised engineering to secure additional projects through competitive tenders and strategic partnerships. As at 31 December 2024, the Group’s order book stood at S$259 million.
In property development, the Group is working closely with its appointed real estate agents to market the leasing of the two-storey retail podium with 53 strata-titled units at The LINQ.
According to the Urban Redevelopment Authority’s (“URA”) statistics, the overall private residential property price index increased at a slower pace of 3.9% for 2024 as compared to 6.8% for 2023 and 8.6% for 2022. In this uncertain market environment, the Group will maintain its disciplined approach to landbank replenishment and carefully evaluate potential development opportunities, balancing growth aspirations with financial prudence amid heightened competition.
The Group’s accommodation business continues to generate steady recurring rental income, strengthening our diversified revenue base. Furthermore, BBR’s entry into the accommodation business has the potential to address the escalating cost of bedspace rental in workers’ dormitories, complementing the Group’s general construction business. It also reflects the resilience of our business model. The Group will continue to explore new business opportunities in this segment.
Just as we design developments to withstand the test of time, BBR has built a foundation of expertise, relationships and market presence that positions us for sustainable growth despite the current challenging environment.
Tan Kheng Hwee Andrew
Chief Executive Officer
Lim Boon Cheng
Independent Non-Executive Chairman