Lian Beng Group reports 12% drop in revenue

SINGAPORE: Singapore’s sluggish construction market has hit Lian Beng Group’s top-line growth. Its revenues fell 12 per cent to S$445 million, in its latest fiscal year ended May.

Construction makes up three quarters of Lian Beng’s revenue, and its construction order book of over S$650 million will keep the firm busy until 2015.

But Lian Beng is branching into joint ventures to develop properties, as a secondary income stream. This includes Dragon Mansion, Hougang Plaza, Hong Leong Garden Shopping Centre, Seletar Garden, King Albert Park and Midlink Plaza.

Earlier in April, it also announced that it is eyeing a proposed listing of its engineering and concrete business in Taiwan.

Ms Ong Lay Koon, executive director of Lian Beng Group Ltd, said: “For the construction industry, I think the BCA has said that the construction demand is around S$17 billion and S$21 billion for 2012 and 2013. With more GLS (Government Land Sales) land coming out for tender, we believe that there’ll be a lot of projects coming out for tender.”

Lian Beng Group’s net profit jumped 8.1 per cent to S$52 million for the full year ended May 31, 2012.

Despite falling revenues, its profits was boosted by gains on the sale of its investment property at New Industrial Road for S$7.9 million.

Its earnings per share rose to 9.83 cents from 9.10 cents. It also increased its dividend by 25 per cent to 2.0 cents per share, from 1.6 cents per share last year.

Source : CNA – 2012 Jul 28

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