Lian Beng profit leapt 111% in nine months to February 2011

Net profit doubled to $36.6 million for the nine months ended February 2011.

According to Lian Beng, this increased from $17.4 million for the nine months ended February 2010.

The strong bottomline growth was achieved on the back of a 5% increase in revenue to $380.0 million.

Commenting on the Group’s performance, Mr Ong Pang Aik, Managing Director of Lian Beng, said, “We are pleased to have sustained the growth momentum achieved since the start of the financial year. This reflects not only the strength of Singapore’s construction industry, but also our efforts to improve productivity and operational efficiency.”

Higher revenue recognition from the construction of new and on-going projects, coupled with contribution from the property development and ready-mixed concrete businesses, continued to fuel the Group’s top-line growth during this period.

Cash and cash equivalents of the Group increased by $69.3 million to $119.2 million as at 28 February 2011, compared to $49.9 million recorded in the previous corresponding period.

While Lian Beng’s core construction segment remains its primary focus and revenue generator, the Group continues to be on the lookout for good property investment opportunities. Through its joint venture with Centurion Properties Pte Ltd, it acquired a freehold land parcel at Mandai Estate along Woodlands Road for $67 million in January this year. The Group has plans to develop it into an industrial complex for sale and lease.

Going forward, the Group remains cautiously optimistic about the construction industry’s outlook for the next 12 months, as the government continues to roll out more public infrastructure projects, and the private property market sustains a stable momentum.

Group will continue its efforts in growing its core business segments in construction, engineering and ready-mixed concrete and leverage on its robust track record, capabilities and financial strength to tender for more public and private sector projects.

As at 28 February 2011, the Group’s order book stood at a healthy $661 million, which should provide it with a steady flow of revenue through FY2013.