Lian Beng's net profit rises 19% on back of record revenue

SINGAPORE - Construction and real estate company Lian Beng Group has reported a 19.4 per cent rise in net earnings to $87.1 million.

Revenue for the year to May 31 jumped by 49.1 per cent to $753.9 million.

Lian Beng attributed its record turnover to higher revenues in almost all its business segments.

External sales of construction segment increased by 12.7 per cent to $424.7 million while external sales of ready-mixed concrete improved by 7.3 per cent to $111 million.

Property development sales topped S$199.5 million as a result of the full recognition of revenue from the fully-sold 55 per-cent-owned industrial property development, M-Space, as well as the sales from property development projects The Midtown and Midtown Residences, Spottiswoode Suites and Lincoln Suites.

For the financial year, its 55 per cent-owned fully-completed Westlite Mandai Dormitory contributed a full 12 months' revenue of $18.2 million.

Lian Beng changed its accounting policy for investment properties from cost method to fair value model to align to industry practice.

As a results, the fair value gains on the group's investment properties were $37.2 million for 2014 and $51 million for 2013.

Disregarding such fair value gains, pre-tax profit this year improved 117.7 per cent, which reflects strong improvement in its core business performance, said the company.

Earnings per share climbed to 16.45 cents from 13.78 cents previously while net asset value per share firmed by 16.49 cents to 74.49 cents.

A final payout totalling 2.25 cents a share was recommended, up from 1.25 cents last year.

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