Lian Beng Group Q4 net profit grows 17.3% on gains from disposal

CONSTRUCTION firm Lian Beng Group saw net profit grow 17.3 per cent to S$37.5 million in the fourth quarter ended May 31 as it booked one-time gains from the sale of investment properties in Melbourne, Australia.

The fourth quarter results took the construction and property development company's full-year net profit to S$54.4 million, up 2.1 per cent from a year ago.

Fourth-quarter revenue fell 22.3 per cent year-on-year to S$97.4 million. Full-year revenue fell 13.4 per cent to S$243.9 million, due mainly to lower revenue from the property development segment, though the construction, investment holding and ready-mixed concrete segments saw revenue gains. However, other operating income nearly tripled to S$54.3 million, mainly due to gains from the disposal of the Melbourne properties.

The group has proposed a final dividend of 1.25 Singapore cents per share, bringing the total dividend for FY2018 to 2.25 Singapore cents per share, matching that for the previous year.

Cash and cash equivalents increased by S$21.4 million to S$209.2 million as at May 31. Said Lian Beng Group in a media release on its full-year results on Friday: "The group's strong balance sheet and healthy cash level enable it to continue to explore local and overseas opportunities to further expand its business."

Given property cooling measures, Lian Beng Group expects residential property prices to remain moderate in 2018. Noting that the property market remains challenging, it said its subsidiary SLB Development "will continue to monitor the market closely and will be cautious when seeking opportunities to replenish its land bank", while continuing to explore opportunities in the region.

On the construction front, the group said it will "tread cautiously" in continuing to tender for public and private sector projects. Its net construction order book stood at S$947 million as at May 31 with a steady flow of activity through FY2022.

Lian Beng Group shares closed down one Singapore cent at 51.5 Singapore cents on Thursday before the release of the results on Friday morning.