SINGAPORE (May 11): Lum Chang Holdings saw its earnings drop 34% to $2.8 million for the 3Q ended March, from $4.2 million a year ago.
This was mainly due to the absence of a one-off gains of $4.7 million a year ago on the disposal of two wholly-owned subsidiaries.
3Q18 revenue fell 60% to $39.0 million, from $98.2 million a year ago, due to lower revenues from six substantially completed construction projects.
However, gross profit soared 71% to $13.3 million in 3Q18, from $7.7 million a year ago. This was due to lower cost of sales, which plunged 72% on the back of cost savings from finalising accounts with subcontractors for various projects that were substantially completed.
Administrative and general expenses rose 26% to $8.1 million, from $6.5 million a year ago, mainly due to higher staff costs and donations.
As at end March, cash and cash equivalents stood at $97.1 million.
The group’s outstanding value of construction projects in progress was $592.5 million as at Mar 31, 2018.
Looking ahead, the group says its development projects are progressing according to their respective schedules, amid a fall in both private and public sector construction activities.
Shares of Lum Chang closed half a cent higher at 36.5 cents on Friday.
