Sim Lian ekes out small gain in full year profit

SINGAPORE - Developer Sim Lian Group has eked out a 2 per cent rise in full year net profit to $171 million.

Revenue for the year to June 30 fell by 4 per cent to $714.7 million.

Pretax profit was 3 per cent higher at $200.1 million, mainly due to reduced contract costs and higher share of results of joint ventures, offset by change in fair value of investment properties.

The property development division contributed $506.7 million to group revenue, down from $586 million last year.

The 14 per cent drop was mainly due to reduced revenue contribution from Waterview and several completed property development projects, partially offset by increase in revenue contribution from Centrale 8 At Tampines, which is accounted for on completion of contract method, and Parc Vera project, which is at the peak of the construction cycle.

Revenue from the construction division rose by 34 per cent to $172.4 million, mainly due to increase in percentage of work done.

Earnings per share eased to 17 cents from 17.2 cents previously while net asset value per share climbed to 97.9 cents compared to 85.4 cents as at end June last year.

An unchanged final dividend of 4.6 cents a share was proposed.

Looking ahead, Sim Lian expects the operating environment for private residential property market in Singapre to continue to be challenging.

It 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.

In February, the group announced the proposed acquisition of a portfolio of five investment grade neighbourhood shopping centres in Australia.

Sim Lian expects to achieve a set of profitable operating results this financial year.