Lian Beng first quarter profit up 107% to $10.9mln

Expanded ready-mixed concrete unit drove growth as group expects demand for construction services to remain stable.

Singapore’s major homegrown building construction group, Lian Beng Group Ltd, has once again turned in record results, with a 107% surge in net profit attributable to shareholders to $10.92 million for the first quarter of its 2010 financial year, from $5.28 million a year ago. This was achieved on the back of a 32% rise in revenue to $112.3 million, according to a Lian Beng report.

Commenting on the Group’s performance, Mr Ong Pang Aik, Managing Director of Lian Beng, said, “The first quarter of our 2011 financial year has seen us off to a good start. We are encouraged by what we have achieved so far.”

Performance Review
The higher revenue was driven by progressive revenue recognition from existing projects. In addition, the Group also saw higher contribution from its recently expanded ready-mixed concrete business. These factors, along with enhanced operational and cost efficiencies, helped to boost the Group’s bottom line.

During the quarter, the Group clinched two contracts worth $88.28 million and $119.5 million respectively. The first contract was for the construction of a condominium development located at Spottiswoode Park Road, while the second was for the construction of The Scala, a private residential development located at Serangoon Avenue 3.

Outlook
Following the recent successful launches of various private property developments, the Group expects demand for its construction services to remain stable. As at 31 August 2010, the Group's order book stood at $875 million, which will keep it busy through FY13. Still, Lian Beng expects to prospect for more contracts in the public and private sectors.

“Our fundamentals are strong and we have the bandwidth to take on more projects. We were part of the team who was conferred the URA 2010 Architectural Heritage Award for the restoration of Grand Duchess Condominium at St Patrick’s Road, which is a testament to our construction capabilities,” said Mr Ong.