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Lum Chang posts Q3 net profit of S$4.15m
LUM Chang posted a net profit of S$4.15 million for its third quarter ended March 31, a 40 per cent decline from a year ago, mainly due to a fall in share of profits of associated companies and losses from joint ventures, as well as increased cost of sales.
Revenue, on the other hand, went up 27 per cent to S$98.2 million, mainly due to revenue recognition from two construction projects which reported revenues amounting to S$68.2 million.
Earnings per share stood at 1.09 Singapore cents for the quarter, declining from 1.81 cents previously. No dividend was declared for the current quarter.
Cost of sales went up by 42 per cent to S$90.45 million. Lum Chang said that the lower cost of sales in the corresponding quarter for the previous financial year was mainly due to cost savings for construction projects that had been substantially completed.
The share of profits of associated companies fell from S$5.04 million a year ago to S$659,000 in Q3 this year. In Q3 this year, the share of profits was attributed to its associated company which holds interest in a company that owns a freehold property in the UK. The share of profits of S$5.04 million for the quarter last financial year was due to the group's share of profits from an associated company in Singapore that develops residential properties for sale.
The share of losses of joint ventures of S$506,000 in Q3 this year, compared to S$2,000 a year ago, relates to the group's proportionate share of losses from a joint venture company in Singapore that owns a leasehold property.
Lum Chang said that the total outstanding value of construction projects in progress for the group as at March 31 was S$579.7 million.