Lian Beng’s full year earnings treble to $11.9m
Revenue jumps 40% to $194.8m, boosted by buoyant construction market
By EMILYN YAP
CONSTRUCTION company Lian Beng Group yesterday reported net earnings of $11.9 million for the full year ended May 31, 2008 - more than three times the year-ago period’s $3.5 million.
Mr Ong: Lian Beng is in a good position since it’s one of the few contractors with A1 grading
This came on the back of a 40 per cent increase in revenue from the same period last year to $194.8 million.
The construction division was the key growth driver, contributing about 98.7 per cent of the group’s total revenue. Rising construction activity and higher revenue recognition from the progressive completion of projects led to an increase in construction revenue.
The buoyant construction market helped Lian Beng win a number of building contracts in FY2008. These include the construction of the hotel substructure of the Marina Bay Sands Integrated Resort, several private residential developments, and a seven-storey industrial building at Paya Lebar iPark.
The remaining 1.3 per cent of Lian Beng’s revenue came from the engineering and leasing and property development divisions.
In line with the group’s performance, Lian Beng declared a first and final dividend of 0.472 cents per share compared to 0.22 cents per share a year ago.
Going forward, Lian Beng said it expects to be busy fulfilling existing contracts and tendering for more business in the current financial year. The group has an outstanding order book of about $647 million.
Lian Beng maintains a bright outlook, even as the government postponed some $4.7 billion worth of public sector projects to 2010 and beyond to ease the pressure on construction resources.
‘There are many more projects out there for tender,’ said Lian Beng’s managing director Ong Pang Aik. ‘As one of the few building contractors with A1 grading, we are in a good position to capitalise on the opportunities that present themselves.’
Lian Beng shares closed at 22.5 cents yesterday, half a cent down.
Source : Business Times - 29 July 2008
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