CONTRACTOR Lian Beng Group yesterday said that trade receivables has increased $11.8 million 'as the group has yet to receive payments for some of its progress billings'. This was despite a fall in revenue for its first quarter to Aug 31, to $36.2 million from $42 million a year ago. Net profit, however, doubled to $2 million from $998,000 on lower cost of goods sold. From the year ago period, earnings per share rose to 0.36 of a cent from 0.21 cent.Explaining the revenue drop, Lian Beng said that several construction projects have not attained the minimum percentage of completion in order for revenue to be recognised. Likewise, profits rose on higher recognition of several construction projects.
The company said that it held cash on hand of $6 million, up from $4 million a year ago. However, it had overdrafts of $19.4 million, slightly more than $18.3 million last year. Net cash from operating activities came to $10 million, from negative $2.46 million a year ago, on higher payables due to advance payments on construction projects.
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