Sim Lian Group reports 27% drop in earnings due to higher costs, lower revenue

Developer Sim Lian Group has posted a 27 per cent drop in full year net profit to $166.9 million.

Revenue for the year ended June 30 dipped by 3 per cent to $742.2 million.

Pretax profit fell by 29 per cent to $194.8 million, mainly due to increased contract costs of $69.9 million while revenue reduced by $22 million. This was offset by a higher share of results of joint ventures.

Revenue from property development division contributed $586 million to group revenue, a slight increase of 1.5 per cent, mainly due to reduced revenue contribution from the group's industrial development, UB.One which obtained temporary occupation permit last year and was 92.5 per cent sold as at June 30, 2012.

The balance units were sold this financial year.

There was a rise in revenue from Waterview and Parc Vera projects due to the increase in percentage of work done during the year.

The projects have achieved sales of 100 per cent and 99.5 per cent respectively.

Earnings per share eased to 17.2 cents from 25.8 cents previously while net asset value per share increased by 9.3 cents to 85.4 cents.

A first and final dividend of 4.6 cents a share was proposed, lower than the total payout of 7.5 cents last year.