Ley Choon Group has reported earnings of $4.1 million for the FY2022 ended March, 364.8% higher than earnings of $0.9 million in the FY2021, making this the highest figure seen since 2018.
The higher earnings were attributed to the higher revenue and margins for the year.
During the same period, earnings for the group’s continuing operations surged 413.1% y-o-y to $4.2 million.
Earnings per share (EPS) for the period stood at 34.2 cents from the 7.4 cents posted in the year before.
Revenue for the FY2022 increased by 22.9% y-o-y to $92.9 million due to the resumption of construction activities which were delayed or slowed down by the Covid-19 pandemic.
Gross profit increased by 83.7% y-o-y to $10.9 million due to a favourable project mix. Gross profit margin for the year increased by 3.8 percentage points to 11.7%.
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In the FY2022, Ley Choon’s borrowings fell by $26.3 million, which was mainly attributed to a conversion $16.0 million of Murabaha facilities into shares in Ley Choon and a repayment of borrowings of $10.0 million.
The group’s share capital increased 22.7% y-o-y to $97.9 million in FY2022 as a result of the conversion of Murabaha facilities to shares as well.
Despite the stellar performance, no dividend has been declared for the period due to the terms in the debt restructuring agreement signed with the group’s lenders in September 2016 and August 2021.
“In FY2022, we have improved on our results from the year before. While works have slowed down due to the Covid-19 pandemic and its impact on the industry, we are seeing a resumption of construction projects as pent-up demand is released with the loosening of restrictions,” says Toh Choo Huat, executive chairman and CEO of Ley Choon.
“The group overcame the labour crunch and maintained its workforce through the pandemic period. With our in-house asphalt pre-mix plant, we are able to continue providing one-stop solutions for underground infrastructure construction with a reduced reliance on external parties,” he adds.
In its outlook statement, the group has noted the Building and Construction Authority (BCA)’s projection of around $27 billion to $32 billion in construction demand in 2022.
In 2022, the public sector is expected to contribute 60% of the total construction demand. This is supported by the pipeline of public housing projects, healthcare developments and infrastructure works, adds the group in its statement on May 30.
Shares in Ley Choon closed flat at 1.7 cents on May 27.
