Sim Lian’s net profit surges 40% to $241m in FY15

On back of higher property development, construction revenue.

Sim Lian reported a full-year net profit of $241.2m for FY15, 40% higher compared to $171.8m in the previous financial year.

The growth was driven by substantially higher revenue at its property development and construction divisions.

Property development revenue nearly doubled to $914m in FY15, compared to $507m in FY14. The construction segment raked in $229m for the period compared to $172m in FY14.

Sim Lian incurred finance costs of $5.3 million compared to $2.2 million in FY2014, mainly due to the interests on bank loans undertaken for the purchase of investment properties located in Australia. It also incurred foreign exchange losses of $13.8m.

“With the past rounds of property cooling measures and the loan restrictions measures announced by Monetary Authority of Singapore in June 2013, the Group expects the operating environment for property market to continue to be challenging,” Sim Lian said in its financial statement.

“The Group expects to achieve a set of profitable operating results for FY2016. Following the adoption of INT FRS 115 with effect from 1 July 2010, the Group expects greater fluctuations in our future earnings as all of its ongoing projects are being accounted for using the completion of contract method,” Sim Lian noted.