Lian Beng’s Interim Net Up Four Times

Source : The Business Times, January 11, 2008

Construction division remains key growth driver, contributing 90% to revenue.

CONSTRUCTION outfit Lian Beng Group has achieved a near quadrupling in net profit for the six months ended Nov 30, 2007.

Its first-half net income attributable to equity-holders was a record $8.06 million, up from $2.2 million for the corresponding period of 2006. This was due mainly to improved takings from its construction business. Revenue for the six months rose 23 per cent to $106.3 million. Earnings per share came to 1.72 cents, up from 0.48.

‘The past half year has been very exciting, after a dry spell that lasted about 10 years,’ said Lian Beng’s managing director Ong Pang Aik. ‘We managed to secure some interesting contracts, and were able to take advantage of the construction boom to expand our business activities.’

The group said its strong half-year results were due largely to better margins from its construction services, and higher revenue recognition from the progressive completion of construction projects.

Lian Beng said its construction division continued to be its key growth driver - contributing more than 90 per cent to its revenue. The remaining 10 per cent came from the engineering and leasing, and property development divisions.

The significant construction contracts that were added to Lian Beng’s order book during the half-year included condominium developments at Toh Tuck Road and Simon Road.

The group expects the outlook for the construction and property sectors to remain relatively robust in the next six to 12 months. Lian Beng’s construction order book stands at some $608 million to date.

‘We will maintain our strategy of selectively tendering for larger scale construction projects in both the public and private sector, and will gradually strengthen our property development arm via suitable acquisitions and strategic alliances,’ Mr Ong said.

Lian Beng shares closed 4.5 cents down at 74 cents yesterday.