NORDIC Group has secured S$40.8 million worth of new contracts with repeat customers.
The systems integration solutions provider announced on Sunday (Aug 27) that these clients include multinational companies, and those in the marine, offshore oil and gas sectors.
The group also highlighted that the new contracts are not expected to have a material impact on the consolidated net tangible assets per share and earnings per share (EPS) for the current financial year.
The contracts were secured through several divisions, with the cleanroom, air and water engineering solutions section contributing the most value at about S$9.7 million for ad-hoc and maintenance work. These projects will mainly be completed in the first quarter of 2025.
In a separate bourse filing on the same day, the group said that the option to purchase (OTP) granted by its wholly-owned subsidiary, Austin Energy Offshore, to sell a factory cum warehouse has been exercised by the purchaser, Aver Asia.
The consideration for the proposed disposal is S$3.5 million excluding goods and services tax, and the aggregate value is at 2.1 per cent of the group’s market capitalisation as at Aug 24, the last full market day before the OTP’s exercise.
The property is located at 24 Benoi Place. With a land area of approximately 39,000 square feet, it is held under a lease of about 19 years from JTC commencing Sep 21, 2011.
Its net asset value as at Jun 30 was S$2.5 million, or 2.2 per cent of the group’s net asset value, based on the first half year financials, the group said.
The option fee of S$35,000, or 1 per cent of the consideration, was paid by the purchaser upon the granting of the OTP. A further sum of S$315,000, or 10 per cent of the consideration less the option fee, was paid upon exercise of the OTP.
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The remaining consideration will be paid on completion, which should be within three months from the date of exercise of the OTP, or within four weeks from the date of the JTC’s final approval, whichever is later.
The group also noted that the property is not a core asset, and the proceeds from the proposed disposal will be used to repay its current bank borrowings and improve its overall cash position.
Based on the assumption that the proposed disposal had been completed on Jan 1, 2022, the EPS for FY2022 would have increased to S$0.055 from S$0.053.
Shares of Nordic closed Friday flat at S$0.420.
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