Lian Beng Group posts net profit of $17.2m for FY09, to pay 0.6 cps in dividends

Homegrown building construction group Lian Beng has posted a 43.3% gain in net profit to $17.2 million for the financial year ended May 31 (FY09), compared to $12 million in FY08. The record profit was achieved on the back of a 58.3% jump in revenue to $308.4 million, from $194.8 million in FY08.

Lian Beng says its construction division remained its key growth driver, contributing the bulk of total revenue.

Gross profit grew 26.8% to $37.1 million, as the group enjoyed higher profit recognition from progress payment on various projects, along with contribution from its property development management, training & testing and ready-mixed concrete businesses.

During the year, the group secured five construction projects worth approximately $285 million. Among these was a public sector contract to design and construct a NEWater pipeline from the Changi NEWater plant to Jurong, Tuas and Jurong Island; and another for the development of camp facilities at Kranji for the Defence Science and Technology Agency. The other three projects were private residential developments — Bellerive Condominium, Emerald Hill Residences and the prestigious Ritz-Carlton Residences, which was awarded to the Group’s subsidiary, Millennium International Builders.

In view of its positive strong performance, the group is declaring a first and final cash dividend of 0.4 cent per share, and a special dividend of 0.2 cent per share. Together, this represents a dividend payout ratio of 19%.

Source : The Edge – 29 Jul 2009

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