Lian Beng warns of lower FY2023 profits on unit’s expected losses

CONSTRUCTION and engineering company Lian Beng is expected to report lower profits for the full year ended May 31, as its subsidiary is expected to record a loss for the second half of its fiscal year.

Property developer SLB Development , the subsidiary, had announced in a separate profit guidance issued on Thursday (Jul 20) evening that it was expecting to report a loss for the six months ended May 31.

The poorer performance was mainly due to higher finance costs and lower revenue recognised from its property development projects; this was because the revenue from these projects was largely recognised before FY2023 as the projects progressed, the company said in a bourse filing.

Further details of the group’s financial performance will be disclosed in SLB’s unaudited financial results for FY2023, to be released on Jul 29.

In light of the profit guidance issued by SLB, Lian Beng said it is expected to record lower profits for FY2023.

Shares of Lian Beng have been suspended from trading since Jul 10. Shares of SLB Development closed flat at S$0.13 on Thursday before the announcement. (*see amendment note)

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*Amendment note: An earlier version of the article wrongly stated that shares of Lian Beng closed flat on Thursday.