SINGAPORE (May 29): Ley Choon Group, the infrastructure construction company, bounced back into profitability in FY17 with full-year earnings of $17.7 million.
This came on the back of four straight quarters of profitability. In FY16, the group made a net loss of $60 million.
The bottomline growth was supported by a strong 37.2% growth in its revenue to $115.4 million from $84.1 million. The significant improvement was due mainly to higher income recognised from its contracts carried out by its Pipes and Roads business segment, which was sufficient to offset the lower revenue recognised from the contracts for its Construction Materials segment.
Ley Choon registered gross profit of $23.0 million and a gross margin of 20% on the back of improved cost management. In addition, other income rose to $20.9 million in FY17, due mainly to its gain on disposal of two pieces of property as well as a reversal of impairment losses on its assets.
In May, the group successfully concluded its renounceable non-underwritten one-for-one rights issue which raised total net proceeds of $8.6 million.
Ley Choon says its near-term focus is to be a strong and competent participant in the public sector construction industry.
The stock closed at 2.5 cents, 15.7% higher year to date.
