Lum Chang sees Q2 net profit rise 131%

SINGAPORE - Local construction group Lum Chang Holdings saw second quarter net profit soar 131 per cent to $7.25 million, it said on Thursday.

Revenue for the three months to Dec 31 fell 20 per cent to $74.3 million, mainly due to lower revenue recognised from two construction projects, of $19.1 million.

The company registered higher distribution and marketing expenses, which rose 48 per cent to $782,000, due to higher sales from one of its Malaysian developments.

It also had higher finance expenses, which rose to $738,000 from $468,000, mainly due to a bank loan in the third quarter of the 2014 financial year, to partially fund the purchase of a freehold property in Britain.

Net profit for the half year fell 47 per cent to $9 million, while revenue fell 34 per cent to $119.7 million.

The company said that the construction industry is expected to remain challenging due to intense market competition and increasing business costs from a tight labour market and higher foreign worker levies.

Earnings per share for the quarter was 1.89 cent, up from 0.84 cent a year ago, while net asset value per share was 50.02 cents as at Dec 31, down from 51.96 cents as at June 30.

Lum Chang shares closed down half a cent at 35 cents on Thursday.