Lian Beng's full year earnings treble to $11.9m

July 29, 2008
Lian Beng's full year earnings treble to $11.9m
Revenue jumps 40% to $194.8m, boosted by buoyant construction market
By EMILYN YAP

CONSTRUCTION company Lian Beng Group yesterday reported net earnings
of $11.9 million for the full year ended May 31, 2008 - more than
three times the year-ago period's $3.5 million.

This came on the back of a 40 per cent increase in revenue from the
same period last year to $194.8 million.

The construction division was the key growth driver, contributing
about 98.7 per cent of the group's total revenue. Rising construction
activity and higher revenue recognition from the progressive
completion of projects led to an increase in construction revenue.

The buoyant construction market helped Lian Beng win a number of
building contracts in FY2008. These include the construction of the
hotel substructure of the Marina Bay Sands Integrated Resort, several
private residential developments, and a seven-storey industrial
building at Paya Lebar iPark.

The remaining 1.3 per cent of Lian Beng's revenue came from the
engineering and leasing and property development divisions.

In line with the group's performance, Lian Beng declared a first and
final dividend of 0.472 cents per share compared to 0.22 cents per
share a year ago.

Going forward, Lian Beng said it expects to be busy fulfilling
existing contracts and tendering for more business in the current
financial year. The group has an outstanding order book of about $647
million.

Lian Beng maintains a bright outlook, even as the government
postponed some $4.7 billion worth of public sector projects to 2010
and beyond to ease the pressure on construction resources.

'There are many more projects out there for tender,' said Lian Beng's
managing director Ong Pang Aik. 'As one of the few building
contractors with A1 grading, we are in a good position to capitalise
on the opportunities that present themselves.'

Lian Beng shares closed at 22.5 cents yesterday, half a cent down.