Ley Choon bounces back with a $3.7m net profit in Q4

Thanks to higher income from its pipes and roads business segment.

Construction firm Ley Choon Group Holdings registered a $3.7m profit for the past quarter, swinging back from a net loss of $13.5m a year ago.

This was on the back of the 24.6% increase in revenue to $29.2m due to the higher income recognised from its pipes and roads business segments.

“At the macro level, construction demand in the public sector is expected to be healthy, fueled by upcoming mega infrastructure projects such as the Jurong Regional Line, Cross Island Line and various infrastructure developments for Changi Airport Terminal 5,” the group said in a statement.

Against this backdrop, the Group will continue to adopt strategies that strengthen and deepen its expertise and core competencies, so that it stays ahead in the construction industry. Recently in April 2017, the Group announced it successfully secured a new contract worth $2.9m from Public Utilities Board.

Here's more from the group:

The Group’s profitability for 12MFY17 was underpinned by a strong 37.2% growth in its revenue to S$115.4 million from S$84.1 million in 12MFY16. The significant improvement was due mainly to higher income recognised from its contracts carried out by its Pipes and Roads business segment, which was sufficient to offset the lower revenue recognised from the contracts for its Construction Materials segment.

The Group registered gross profit of S$23.0 million and a gross margin of approximately 20.0% on the back of improved cost management. In addition, other income rose to S$20.9 million in 12MFY17, due mainly to its gain on disposal of two pieces of property as well as a reversal of impairment losses on its assets.