SINGAPORE (Jan 15): Lian Beng Group reported $7.7 mil in earnings for 2Q19, up 21.3% from a year ago due to higher margins.
Revenue came in 15.3% lower at $79.9 million compared to $94.4 million in 2Q18, as lower sales contribution from the Property Development segment offset higher sales from the Construction and Investment Holding segments.
Cost of sales fell 21% to $63.5 million over the quarter, which the group says in line with the lower revenue.
Distribution expenses fell by 81.3% to $0.5 million from $2.5 million in 2Q18. This was mainly due to lower sales commission for T-Space @ Tampines as well as in the absence of a marketing & leasing agent’s fee incurred the previous year for a property in Melbourne.
Meanwhile, administrative expenses grew by 35.3% to $6.9 million from $5.1 million a year ago, due to higher headcount and related overheads from the group’s acquisition of a 60%-owned subsidiary in June 2018.
The latest set of quarterly results brings Lian Beng’s 1H19 earnings to $14.7 million, 62% down from its half-year earnings of $17.8 million a year ago.
As at end Nov 2018, the group’s cash and cash equivalents stood at $164 million compared to $156 million in the previous year.
Going forward, Lian Beng says it expects its order book of $1.2 billion as at Nov 30, 2018, to provide the group with a steady flow of activities through FY2022 as it continues to leverage its proven expertise to tender for both public and private sector projects.
The group nonetheless remains cognisant of the challenges that lie ahead for Singapore’s residential property market, and says it will exercise caution in seeking opportunities to replenish its land bank – even as it continues to explore joint venture opportunities that complement its property development business.
Shares in Lian Beng closed flat at 50 cents on Monday.
