Lian Beng's Q1 net profit falls despite surge in revenue

CONSTRUCTION firm Lian Beng's quarterly net profit slumped 30.9 per cent to $7.26 million as its other operating income fell and distribution expenses went up.

Profit fell despite revenue increasing by 44.2 per cent to $163.5 million.

Lian Beng said its other operating income decreased to $1 million, down from $2.7 million compared to the said period last year as it saw a fall in its dividend income received in the first quarter ended Aug 31.

Distribution expenses also jumped to $3 million from $200,000 on the back of high sales and marketing expenses of its projects, Spottiswoode Suites and The Midtown.

Lian Beng said the improvement in revenue was mainly due to the higher revenue recognition from its construction, property development and ready-mixed concrete segments.

Its relatively new dormitory business also added to the higher revenue.

Earnings per share for the three months ended on Aug 31 came in at 1.37 cents a share, lower than the 1.98 cents over the same period last year.

The net asset value per share stood at 50.55 cents, higher than the 49.2 cents in the previous quarter ended May 31.