Development, construction activities drive up Sim Lian Group's Q1 profit

SINGAPORE - Developer Sim Lian Group has reported a 159 per cent jump in first quarter net profit to $71.7 million.

Revenue for the three months to Sept 30 rose by 151 per cent to $379 million.

The property development division contributed $297.2 million to group revenue, mainly due to revenue contribution from several projects.

The construction division contributed $68.9 million, an increase of 87 per cent.

The higher revenue was mainly due to increase in percentage of work done.

Finance costs surged to $2 million from $70,000, mainly due to the interests on bank loans undertaken for the purchase of investment properties in Australia.

The purchase completion of office building in 50 Margaret Street, Sydney was in September 2013.

The purchase completion of four of its five investment grade neighbourhood shopping centres in Australia was in April 2014 while that of the shopping centre at Rothwell, Queensland took place in June 2014.

Earnings per share soared to 7.1 cents from 2.8 cents previously while net asset value per share firmed to $1.05 compared to 98 cents as at June 30.

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