SINGAPORE (Feb 13): Ley Choon Group Holdings, the one-stop service provider for underground utilities construction and road works, posted its third consecutive profitable quarter for the 3Q17 with earnings of $8.8 million from a loss of $2.9 million a year ago.
This strong 3Q17 contributed to a 9M17 earnings of $14.1 million, cementing a successful turnaround from the loss of $46.5 million in 9M16.
Revenue for 3Q17 dropped 10.2% to $27.6 million mainly due to the completion of some projects and the decrease in sale of construction materials in the quarter. But gross profit improved 50.1% to $4.4 million mainly due to lower cost as a result of better usage and deployment of internal resources.
Other income for 3Q17 increased by $8.4 million to $9.1 million mainly due to the gain on disposal of the office building at 55 Kranji Crescent together with the plant and equipment of $7.8 million in the quarter.
Ley Choon says the three consecutive profitable quarters and the disposal of assets referred above have enabled the group to reduce its borrowings and improve its financial position.
Total long-term and short-term borrowings have reduced by $35.5 million from $110.7 million as at March 31 2016 to $75.2 million as at Dec 31 2016.
The group has secured a new contract from the Public Utilities Board amounting to $2.7 million in November 2016. The group’s unfulfilled order book now stands at $157 million, providing a sustainable revenue flow.
Shares of Ley Choon closed at 2.6 cents on Friday.
