Lian Beng Group doubles H1 FY2015 net profit to S$35.5 million

MAINBOARD-listed Lian Beng Group has doubled its net profit to S$35.5 million for the first six months of its financial year ending Nov 30, 2014, largely due to the spike in its share of results of associates and joint ventures.

For the first half of FY2015, the construction group's share of results of associates and joint ventures came in at S$21.5 million, compared with the S$964,000 loss in the previous corresponding period.

This was due to the disposal of the group's stake in the hotel development at Middle Road, as well as profits from its residential property development projects, including NEWest and KAP Residences.

Revenue for the first half of FY2015 rose 26.1 per cent to S$367.6 million, lifted by the construction segment and workers' dormitory business.

Earnings per share for the six months ended Nov 30, 2014 was 6.75 Singapore cents, up from 3.27 cents a year ago.

The group has declared an interim dividend of S$0.01 per share.

It added that it is "cautiously optimistic" about its core construction business as its construction order book as at end November 2014 stood at about S$821 million, providing it with sustainable flow of construction activities through FY2017.

"Better net cash flows from operating activities enable the group to end its first half of the financial year with a cash and cash equivalent of S$166.9 million," said the group, which added that the stronger war chest will allow it to continue to seek opportunities, local and abroad, to further expand its business and diversify its revenue sources.