ISOTeam

ISOTeam wins S$24.2 million in new contracts including Addition and Alteration works worth S$16.8 million SINGAPORE, 29 August 2017 – ISOTeam Ltd. (“ISOTeam” or together with its subsidiaries, the “Group”), an established eco-conscious Repairs and Redecoration (“R&R”), Addition and Alteration (“A&A”) and complementary niche services specialist in Singapore, has secured 15 projects worth an aggregate of S$24.2 million. These projects are slated for completion by August 2019. Executive Director and Chief Executive Officer, Mr Anthony Koh (许统发), said, “Business has been brisk, particularly for our A&A division which accounted for around S$16.8 million out of the S$24.2 million new contracts we secured. The rest of our business units are also contributing positively and we are confident that the rest of FY2018 will continue to bring new revenue for us despite challenging market conditions.”

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(30-08-2017, 09:06 AM)Life is a game Wrote: ISOTeam wins S$24.2 million in new contracts including Addition and Alteration works worth  S$16.8 million   SINGAPORE, 29 August 2017 – ISOTeam Ltd. (“ISOTeam” or together with its subsidiaries, the “Group”), an established eco-conscious Repairs and Redecoration (“R&R”), Addition and Alteration (“A&A”) and complementary niche services specialist in Singapore, has secured 15 projects worth an aggregate of S$24.2 million. These projects are slated for completion by August 2019.   Executive Director and Chief Executive Officer, Mr Anthony Koh (许统发), said, “Business has been brisk, particularly for our A&A division which accounted for around S$16.8 million out of the S$24.2 million new contracts we secured. The rest of our business units are also contributing positively and we are confident that the rest of FY2018 will continue to bring new revenue for us despite challenging market conditions.”

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Finally, some positive news

My own analysis gives me the feeling that ISOTeam's grow is rapidly slowing down; although their projects come in "many small ones", it appears that the very fierce market competition might have whittled down their competitive advantage. Would any VBs agree with my assessment?

I would agree if Singapore is in a rapid growth stage now and that's all isoteam can clinch. But we all know the economy now and I wouldn't say isoteam is doing a fantastic job but I am satisfied.

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The fact that they are starting another business -- bike sharing -- may be a signal of their intent to look for something else to drive growth/profits.

Why else would they do so, if their core business has many more good years?

Tbh I'm not sure there is a need to be alarmed by the bike sharing business. It's only a million dollar investment where iso can easily earn from a couple of painting projects. All along iso has been working closely with govt and focusing on green environment. I see this bike sharing as an extension of it and align with iso mission. Sometimes we can take a step back and see the broader picture of what this project can bring for iso in future. They also invested into solar right which is linked to public housing same as bike sharing geo system in public housing areas. All linked IMO. If one day I see iso going into F&B then I have doubts about their intent.

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ISOTeam clinches mega A&A project worth S$46.54 million

ISOTeam Ltd. announced that the Group has secured the following projects, which are worth approximately $52.58 million in aggregate:
(1) 2 Addition and Alteration (A&A) projects with a total value of approximately $48.89 million; 
This includes the following projects:
(a) The proposed conversion of the existing retail, theatre lobby and theatre 2 to nightclub and restaurant cum bar with ancillary live entertainment at Marina Bay Sands integrated resort, which is expected to be completed by March 2019; and
(b) The proposed development of park connector at Tanjong Rhu Promenade, which is expected to be completed by September 2019.
(2) 1 Interior Design project with a value of approximately $2.34 million, which is expected to be completed by October 2018;
(3) 2 Repairs and Redecoration (R&R) projects with a total value of approximately $0.91 million, which is expected to be completed by August 2018;
(4) 2 Coating and Painting (C&P) projects with a total value of approximately $0.44 million, which is expected to be completed by September 2018.

More details in http://infopub.sgx.com/FileOpen/ISOTeam%...eID=507156

The government's intent to continue refurbishing old flats has given me reason to re-look at ISOTeam. But it seems that the numbers has yet to provide a compelling case for investment.

1) Since IPO, ISOTeam has made several acquisitions and investments:

October 2014: Four contractors for $5m
December 2015: TMG Projects for $4m
January 2017: Rong Shun for $6.4m
April 2017: Property at Changi North with 13 years lease remaining, for $12.5m
May 2017: CPS of Sunseap convertible into 2.78% of share capital, for $5m

Total: $32.9m

These were funded by bank loans (which grew from $5.1m in FY13 to $23.4m in MRQ), IPO proceeds ($6.7m), and placement proceeds ($6.6m).


2) The acquisition of contractors related to its A&A and R&R works has certainly boosted its revenue. But at the same time, unbilled receivables grew rapidly as well. Its billed receivables remained stable. Overall, total billed and unbilled receivables as a proportion of revenue is less healthy than before.

              Revenue ($mil)   Total Receivables ($mil)     %
9M18:               63.5                       44.9                  70.6
FY17:                82.9                       43.5                  52.5
FY16:                94.1                       36.1                  38.4
FY15:                81.6                       28.5                  35.0
FY14:                69.8                       26.1                  37.4
FY13:                48.2                       19.5                  40.5
FY12:                35.4                       15.3                  43.3
FY11:                24.5                       9.7                    39.6
FY10:                26.6                       7.0                    26.3

Perhaps ISOTeam is engaged in several big projects, hence has $22.5m of unbilled receivables as of latest results. When it IPO-ed in FY13, it had only $3m of unbilled receivables.


3) While it has been taking longer to collect its receivables, ISOTeam has been a good customer to its subcontractors and suppliers by being rather disciplined in making payments.

                  COGS ($mil)      Total Payables ($mil)      %
9M18:               50.9                       16.9                  33.3
FY17:                61.2                       20.2                  33.0
FY16:                69.9                       30.0                  42.9
FY15:                61.4                       22.8                  37.1
FY14:                56.3                       17.6                  31.3
FY13:                40.0                       11.8                  29.6
FY12:                29.0                       8.2                    28.4
FY11:                20.9                       5.1                    24.4
FY10:                20.5                       5.1                    25.0


4) Due to the longer time it takes to collect receivables and short time it takes to pay suppliers, performing more jobs will require an increasing amount of working capital. Together with its aggressive acquisition and investments, FCF is merely 14% of OCFbWCC, and 20% of net profit. The low FCF also explains why dividends (and payout ratio) has been subdued.

Sum of FY10 to FY17

Operating Cash Flow before Working Capital Change:   $65.3m
Increase in Working Capital                                    : -$27.9m

Operating Cash Flow                                              :  $37.3m
Investing Cash Flow                                               : -$28.3m
Free Cash Flow                                                      :  $9.0m

Dividends                                                              :  $7.1m

Net Profit                                                              :  $44.9m


5) Assuming that ISOTeam no longer makes substantial acquisition and investments, is able to improve on its collection of receivables, and make its acquisitions payoff, FCF generation (and dividends) may improve tremendously. For now, its track record seems mediocre. And that makes the $95m market price of ISOTeam seem unattractive.

ISOTeam adds S$21.98 million in new orders

Following last week’s announcement that it had secured its second Home Improvement Project (“HIP”) from the Housing Development Board worth S$26.3 million, ISOTeam Ltd. today announced yet another fillip to its order book, which includes a S$11.31 million contract to install Singapore’s largest offshore floating solar farm.

Together with three other Repairs and Redecoration (“R&R”) projects worth S$9.80 million and two Fireproofing projects worth S$0.87 million, ISOTeam’s order book has hit yet another record to reach a new high of S$142.98 million, the highest since the Group’s inception more than two decades ago.

The abovementioned contracts awarded are expected to have a positive impact on the earnings per share and net tangible assets per share of the Group for the current financial year ending 30 June 2019.

More details in :
1. http://infopub.sgx.com/FileOpen/ISOTeam%...eID=539999
2. http://infopub.sgx.com/FileOpen/ISOTeam%...eID=540000

Someone wrote on isoteam recently just sharing

https://ernest15percent.com/index.php/20...10-jan-19/

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