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Lian Beng's Q3 profit up 63% on higher revenue

13 April 18 | The Business Times


CONSTRUCTION firm Lian Beng Group, which is spinning off its property unit into a Catalist listing this month, on Thursday said it expected a "steady flow of activity" through to fiscal 2022. It reported a 63 per cent rise in net profit for the fiscal third quarter from a year ago.

Net profit for the three months ended Feb 28, 2018, stood at S$4.68 million, up from S$2.87 million a year ago. This translated to earnings per share of 0.94 Singapore cents, up from 0.57 Singapore cents a year ago.

Revenue rose 62.5 per cent to S$58.8 million. The company did not provide a breakdown for its quarterly performance.

Lian Beng said the group's total construction order book stood at S$924 million as at Feb 28, 2018, boosted by the two residential building contracts worth S$336 million at Serangoon North Avenue 1 and Potong Pasir Avenue 1 as well as its largest building contract worth S$435 million awarded by HDB.

It also noted that total value of construction contracts to be awarded in 2018 is expected to reach between S$26 billion and S$31 billion, according to the Building and Construction Authority of Singapore. This would be up from S$24.8 billion in 2017.

For the nine-month period, the company reported a 31.9 per cent decrease in net profit to S$18 million, reflecting lower gross profit and higher finance costs. Revenue was down 6.2 per cent to S$147 million.

Lian Beng's spin-off, SLB Development, is looking to raise S$54.7 million through a Catalist listing. Lian Beng will retain 73.93 per cent of SLB.

SLB's portfolio comprises five residential and mixed-use developments such as Spottiswoode Suites and KAP & KAP Residences.

The initial public offering closes at noon on April 18, with trading expected to start on April 20.