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Sim Lian's full year profit leaps 41%
Sim Lian's net profit for the full year ended June 30 leapt 41 per cent from a year ago to S$240.37 million, on the back of a 67 per cent jump in revenue to S$1.19 billion.
Its property development division contributed S$914 million to the group's revenue in FY2015, 80 per cent higher than in FY2014. The increase is mainly due to more development projects completed during the year.
The construction division contributed S$229 million to the group's revenue, an increase of 33 per cent from FY2014 mainly due to increase in percentage of work done.
But contract costs also surged 88 per cent over the year to S$906 million in tandem with the increase in revenue. The group also incurred higher operating expenses during the year and S$13.8 million in foreign exchange losses mainly due to the revaluation of intercompany balances which are not denominated in the functional currency of respective subsidiaries.
Sim Lian said it expects the operating environment for the property market to remain challenging.
"The group remains committed to seeking strategic investment opportunities for its continued growth and is focused on building a stable base of recurring income to smoothen its fluctuating profits from property development division," it added.
"The group expects to achieve a set of profitable operating results for FY2016. Following the adoption of IFRS 115 with effect from July 1, 2010, the group expects greater fluctuations in our future earnings as all of its ongoing projects are being accounted for using the completion of contract method."
The Board has proposed a first and final dividend of 7.28 cents, higher than the 4.6 cents declared for fiscal 2014.