Building construction group Lian Beng has reported a 168% surge in profit after tax to $5.4 million for the first quarter of its 2010 financial year, compared to $2 million a year ago. This was achieved on the back of a 128.6% rise in revenue to $85.1 million.
Lian Beng says the growth in revenue was driven by revenue recognition from the completion of projects like Ferraria Park, Sixth Avenue Condominium and Northwoods, as well as progress payments from existing projects such as the construction of Amber Residences, camp facilities at Kranji, Kovan Residences and Bellerive Condominium. Along with this, the group also saw higher revenue contribution from Ola Residences, a wholly-owned property development project. This, coupled with measures to improve operational productivity, helped to lift the Group’s bottom line accordingly.
With signs of improvement in the global economic situation, Lian Beng says the local private residential property market has also enjoyed a healthy and sustained level of interest. This momentum is expected to continue following the successful launch of various private property developments, and the rollout of government infrastructure projects.
During the quarter, the group clinched a contract worth $101 million for the construction of Waterfront Key, a private residential development in Bedok. This has helped to boost its order book to $545 million, which should ensure a steady flow of construction activity for the next three years, it adds.
The group expects to be participating in more tender activities for private and public projects over the rest of the financial year.
Source : The Edge – 15 Oct 2009