Deluge reports 85.7% profit growth and declares first interim dividend

Deluge Corporation reported half-year net profit of S$8 million on November 13, up 85.7 per cent year on year, and declared its first interim dividend. The results cover the six months ended September 30 and are its first since joining the Singapore Exchange mainboard in October.

Shareholders will receive 1.35 Singapore cents a share, with the distribution totalling about S$2 million. For the first half of FY2027, revenue increased from S$50.3 million to S$67.2 million, a gain of 33.6 per cent. Gross profit climbed 35.8 per cent to S$21.3 million.

The fire-protection specialist said greater revenue recognition on ongoing projects and improved Integrated Projects margins were the main earnings drivers. Revenue in that business rose 54.9 per cent to S$49.1 million, while its pre-tax profit reached S$9 million, compared with S$1.2 million a year earlier.

Maintenance scheduling helped push Lifecycle Services revenue down 3.9 per cent to S$16.6 million, according to Deluge. Products Distribution recorded revenue of S$1.6 million, an increase of 12.5 per cent that the group linked mainly to higher customer demand.

At September 30, outstanding orders amounted to S$440.6 million. Deluge said it had won new contracts worth S$129.2 million since January. Its Malaysian expansion plans include acquisitions, joint ventures and partnerships.

Cash generated by operations dropped from S$9.3 million to S$1.4 million. The group cited higher working-capital requirements, including receivables, supplier advances and contract assets. Cash and cash equivalents were S$8.9 million at September 30.