Hock Lian Seng posts 41% fall in profit for first nine months of 2014

HOCK Lian Seng Holdings reported on Thursday that its net profit for the first nine months of 2014 fell 41 per cent to S$7.14 million, compared to a restated S$12.10 million a year ago. No quarterly breakdown was given.

Its 2013 comparative figures have been restated to take into account the retrospective adjustments arising from adoption of revised FRS28 - Investments in Associates and Joint Ventures and FRS111 - Joint Arrangements.

Revenue decreased by 34.2 per cent to S$45.08 million from S$68.49 million a year ago. This was mainly due to the much lower progress billing recognised for the Marina Coastal Expressway project, as the project is at the end of the construction phase and the two new projects have just started construction. Revenue from workers dormitory business was marginally higher by S$0.4 million to S$8 million.

At the end of September, the civil engineering and infrastructure projects group had cash and cash equivalent of S$115.7 million, up by S$12.9 million.

Its order book for ongoing projects in the civil engineering segment was about S$345 million for the Maxwell station, Changi Airport project, and balance of work for Jalan Gali Batu Depot and Marina Coastal Expressway projects. The construction of its two industrial development properties, namely, Ark@Gambas and Ark@KB, is undertaken by own construction arm. The total contract values of the two projects amounted to about S$96 million.

Hock Lian Seng said armed with the strong balance sheet and cash flow position, "the management will continue to tender for infrastructure projects competitively and explore other business opportunities in property related segment to enhance the shareholders' value".