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Lian Beng's Q2 2016 profit down 2.8% to S$22.9m

LIAN Beng Group on Wednesday reported a 2.8 per cent year-on-year slip in net profit to S$22.9 million for the second quarter ended Nov 30, 2015.

The construction and civil engineering firm's revenue plunged 35 per cent in Q2 2016 to S$130 million, compared to the S$200 million in Q2 2015, in part due to a decrease in revenue from the construction and ready-mixed concrete segments.

Earnings per share for Q2 2016 stood at 4.53 Singapore cents - higher than the 4.5 cents in Q2 2015.

A dividend of one Singapore cent was declared - the same amount as for the corresponding period a year ago.

Said Lian Beng: "The construction industry outlook is expected to remain challenging in the next 12 months with labour cost remaining high due to higher foreign worker levies.

"Despite the challenging market conditions in the construction industry, the group is cautiously optimistic as it has an existing pipeline of construction projects worth approximately S$350 million as at November 30, 2015 which will provide it with a sustainable flow of activities through FY2017."