More completed property projects helped lift full-year earnings for developer Sim Lian Group.
Net profit jumped 41 per cent to $240.4 million for the 12 months to June 30, while revenue was up 67 per cent to $1.2 billion.
Its property development division contributed $914 million to group revenue, thanks to more projects being completed in the year. Its construction division contributed $229 million, 33 per cent up on the same period a year ago, owing to an increase in the percentage of work done, said the firm late on Thursday.
Sim Lian incurred contract costs of $906 million, which were 88 per cent higher than the previous year but in line with the rise in revenue.
It also had higher finance costs, rising to $5.3 million from $2.2 million a year earlier, owing to the interest on bank loans for buying Australian investment properties.
The firm bought
AT A GLANCE
NET PROFIT: $240.4 million (+41%)
REVENUE: $1.2 billion (+67%)
FIRST AND FINAL DIVIDEND: 7.28 cents per share (+58%)
a commercial property in Perth in February.
The firm's property operating expenses grew to $3.8 million, compared with $1.2 million the same period a year ago.
The firm incurred foreign exchange losses of $13.8 million.
Sim Lian is behind the 882-unit A Treasure Trove in Punggol.
It quoted statistics from the Urban Redevelopment Authority, noting that prices of private residential properties slipped 0.9 per cent in the second quarter. This was slightly better than the drop of 1 per cent in the first quarter.
Sim Lian "expects the operating environment for the property market to continue to be challenging".
It is looking for strategic investment opportunities and "is focused on building a stable base of recurring income to smoothen its fluctuating profits from the property development division".
Sim Lian also expects to achieve a set of profitable operating results for the next financial year, it added.
Earnings per share for the year soared from 17 cents previously to 23.9 cents, while net asset value per share was $1.16 as at June 30, compared with 98 cents a year ago.
The firm declared a first and final dividend of 7.28 cents per share, up from 4.6 cents a year ago. Sim Lian shares closed 1.5 cents higher at 88.5 cents yesterday.