Design Studio Cashes In On High-End Property

Source : The Business Times, August 15, 2007

RIDING on the high-end property market in Singapore, the US and the Middle East, mainboard-listed Design Studio has chalked up a first-half profit of $4.1 million, reversing an interim loss of $356,000 last year.

The latest result was achieved on a 78 per cent surge in sales to $32.6 million for the six months to end-June.

At the current rate, the company looks poised to significantly improve on its FY06 full-year earnings of $5.6 million, achieved on sales of $59.7 million.

The interior fitting-out specialist had an order book of $132.7 million on Aug 10, including $61.2 million in residential projects, with the rest in interior fit-outs, export sales and distributorships.

The order book includes a number of high-end condominium projects in Singapore - such as Scotts Square and Orchard View by Wheelock Properties, and Suites @ Cairnhill and Ford @ Holland by Hoi Hup Group, among others.

Design Studio has also clinched the contract to fit out 320 guest rooms at the new Crowne Plaza Hotel at Changi Airport's Terminal 3.

Set up in 1992 as a sofa maker, Design Studio focuses primarily on the supply and installation of built-in furniture and fittings for condominiums and hotels.

In recent years, it has built up a strategic presence in key growth markets worldwide.

Last year, 60 per cent of its revenue came from offshore projects in the US, Middle East, Japan, Malaysia and elsewhere.

In Dubai, the company has a $9.43 million contract to supply and install kitchens in 899 luxury apartments at the 160-plus-storey Burj Dubai.

It is also involved in projects in Bahrain, Qatar, Kuwait and Saudi Arabia.

In the US, it is building and installing the deluxe furniture at Donald Trump's 1,281-unit condo-hotel, the Trump International Hotel & Tower, in Las Vegas.

With high-end property in Singapore in overdrive during the past year or so, Design Studio has been courted by developers of exclusive condos in prime districts.

These include Sky @ Eleven, The Sail @ Marina, Ocean Front Condo on Sentosa, Ardmore II and St Regis Residences. It is also fitting out an exclusive Sentosa boutique hotel, The Capella.

Design Studio's executive chairman and managing director Bernard Lim says the company is poised for stronger growth, going forward.

'We are aiming for a bigger slice of the global markets,' he says. 'We will not just foray deeper into markets like the US but penetrate new markets such as Vietnam and India.

'We have successfully established ourselves in Dubai and will extend our presence into the rest of the Middle East. The Singapore market also presents many opportunities. We expect to tap many residential and hospitality projects here.'