Southern Score Builders Wraps Up FY2025 with Strong Revenue Growth and Strategic Expansion
Southern Score Builders Berhad, a notable name in Malaysia’s construction sector, has just unveiled its financial results for the fourth quarter ended 30 June 2025. The report showcases a year of substantial growth, marked by impressive revenue expansion and strategic moves aimed at future-proofing its business. While the full-year figures are robust, the final quarter provides a fascinating glimpse into the company’s ongoing transformation, balancing new revenue streams with margin pressures. Let’s dive deep into the numbers and what they mean for the company’s path forward.
Core Data Highlights: A Year of Impressive Growth
For the full financial year 2025, Southern Score Builders delivered a stellar performance, underscoring strong operational execution and successful project management.
Full-Year FY2025 Performance Highlights:
- Full-Year Revenue: Climbed by an impressive 29.50% to RM221.07 million.
- Full-Year Profit Before Tax (PBT): Surged by a remarkable 39.87% to RM58.01 million, indicating improved profitability and cost efficiencies.
- Full-Year Net Profit: Grew by 38.98% to RM43.71 million.
- Earnings Per Share (EPS): Increased to 1.77 sen from 1.38 sen in the previous year.
The significant jump in full-year profitability, outpacing revenue growth, was largely attributed to effective cost-saving measures across key projects, including the Vista Harmoni Sentul Residences and Berlian Setapak 2 Residences.
A Closer Look at the Fourth Quarter (Q4 FY2025)
The final quarter continued the revenue growth trajectory, primarily fueled by the company’s recent strategic acquisition of SJEE Engineering Sdn Bhd. This move has successfully diversified the Group’s income streams into mechanical and electrical services.
Q4 FY2025 (Current Quarter)
Revenue: RM81.04 million
Profit Before Tax: RM17.92 million
Net Profit: RM13.54 million
Earnings Per Share: 0.51 sen
Q4 FY2024 (Comparative Quarter)
Revenue: RM63.58 million
Profit Before Tax: RM17.08 million
Net Profit: RM12.90 million
Earnings Per Share: 0.57 sen
Quarterly revenue saw a healthy 27.45% year-on-year increase. This was mainly driven by a RM23.60 million contribution from the newly acquired mechanical and electrical services division (SJEE) and an RM18.62 million contribution from a new main construction project. However, this top-line growth didn’t fully translate to the bottom line, as Profit Before Tax grew by a more modest 4.91%. The company attributes this to the lower profit margins typical of the mechanical and electrical services sector and increased administrative expenses related to its proposed transfer to the Main Market.
Business Segment Breakdown: Diversification in Action
The revenue diversification strategy is clearly paying off. The new segments are becoming significant contributors, offsetting the cyclical nature of turnkey projects which saw a revenue decrease as major developments neared completion.
| Business Segment | Q4 2025 Revenue (RM’000) | Q4 2024 Revenue (RM’000) | Contribution % (Q4 2025) |
|---|---|---|---|
| Turnkey construction services | 37,995 | 63,584 | 46.89% |
| Mechanical and electrical services | 23,599 | – | 29.12% |
| Main construction services | 18,621 | – | 22.98% |
| Other Services (Supply/Consultancy) | 823 | – | 1.01% |
Risk and Prospect Analysis: Building for the Future
Looking ahead, Southern Score Builders is positioning itself to capitalize on a growing construction market in Malaysia, which saw a 12.9% expansion in the second quarter of 2025. The company’s strategy is multi-faceted and forward-looking.
Strategic Initiatives and Market Outlook
- Moving Up the Value Chain: With the acquisition of SJEE, the Group is now equipped to tender for higher-value and more complex projects, such as hospitals, data centres, and pharmaceutical factories, offering integrated construction and mechanical services.
- Embracing Digitalisation: The establishment of Southern Score Digital Sdn Bhd signals a commitment to modern construction methods. The adoption of Building Information Modelling (BIM) aligns with national strategies like the Construction 4.0 Strategic Plan, aiming to enhance project management and efficiency.
- Proposed Main Market Transfer: The company is actively pursuing a transfer from the ACE Market to the Main Market of Bursa Malaysia. This move is expected to boost investor confidence, enhance brand recognition, and provide greater access to capital for future expansion.
Summary and Outlook
Southern Score Builders has delivered a strong financial year, characterized by robust revenue growth and strategic diversification. The acquisition of SJEE has immediately broadened its service offerings and revenue base, although this has come with initial margin pressures as seen in the latest quarter. The company’s proactive strategies—targeting high-value projects, embracing digitalization, and aiming for a Main Market listing—paint a clear picture of its ambitions. While navigating the integration of new businesses and managing profitability will be key, the overall outlook appears constructive, supported by a healthy domestic construction sector.
Key areas to monitor moving forward include:
- The ability to improve profit margins in the newly integrated mechanical and electrical services division.
- Successful execution of the Main Market transfer and leveraging its potential benefits.
- Securing new high-value contracts that capitalize on the Group’s expanded capabilities.
- Managing potential industry headwinds such as rising material costs and labor shortages.
Your Take on the Report
From my perspective, this report highlights a company in a pivotal phase of strategic growth. The move to diversify is prudent, and the focus on digitalization and a Main Market listing sets a strong foundation for the future. While the short-term margin dip is a point of attention, the long-term strategic direction appears solid.
What are your thoughts on Southern Score Builders’ performance and future strategy? Do you think its diversification into mechanical and electrical services will be a key long-term growth driver?
Share your insights in the comments section below!
