SINGAPORE (May 11): Tiong Seng Holdings posted a 9.4% increase in earnings to $4.1 million in the first quarter ended March, from $3.7 million a year ago.
This was mainly attributable to a share of profit from joint ventures of $0.7 million in 1Q17, compared to a loss of approximately $0.7 million a year ago.
Revenue decreased by 16.0% to $207.7 million in 1Q17, from $247.2 million a year ago.
This was mainly attributable to lower revenue recognised in its property development segment, which fell 86% to $13.2 million, from $91.8 million a year ago.
The decline was partially offset by an increase in revenue from its construction segment, which grew 25% to $194.0 million, from $154.9 million in the corresponding period last year.
Cash and cash equivalents stood at $93.0 million as at March 31, 2017.
“The local construction scene continues to experience persistent headwinds even as growth of the overall economy picks up speed on the back of the manufacturing sector,” says Tiong Seng CEO Pek Lian Guan.
“Given this downcast outlook, it is imperative that we maintain a resilient balance sheet that will tide us over this challenging period. As such, we will continue to optimise our gearing level and adopt prudent cost controls,” Pek adds.
Shares of Tiong Seng closed half a cent lower at 25.5 cents on Thursday.
