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Lum Chang Q1 profit jumps to S$8.7m as revenue recognition begins at projects

CONSTRUCTION company Lum Chang Holdings posted a fourfold increase in net profit during its fiscal first quarter as it began to recognise revenue from a couple of development projects.

Net profit grew to S$8.7 million, or 2.26 Singapore cents per share, for the three months ended September from S$1.8 million a year earlier.

Revenue doubled to S$90.5 million as Lum Chang began to recognise S$35.9 million of revenue for two construction projects. No revenue from those projects had been reported in the year-ago period because completion had not progressed far enough.

Lum Chang said it expects to begin recognising revenue for a new construction project in Woodlands in the second half of the current financial year, which is also the first half of 2016.

Lum Chang shares slipped 2.6 per cent, or one Singapore cent, to head into the weekend at 37.5 Singapore cents on Friday.