Lian Beng Group has announced that its net profit for the first half of its 2011 fiscal year doubled to S$22.6 million, from S$11.3 million in 2010, driven by higher revenue from its core construction business.
The company’s strong bottomline improvement came on the back of a 58.2 percent turnover gain to S$249.3 million in H1 2011, from S$157.6 million over the same period last year.
The increase was attributed to higher revenue recognition from the group’s construction unit, as well as contributions from its real estate development and ready-mixed concrete business.
Lian Beng saw a 15.6 percent increase in gross profit margin from 13.3 percent in 2010, due to “prudent cost management”, it said.
“Our performance reflects the current strength and resilience of the construction industry and is also the fruit of our efforts to improve our cost structure and operational efficiency,” said Ong Pang Aik, Managing Director at Lian Beng.
During the period, Lian Beng secured S$207.8 million worth of contracts for the construction of two private residential projects — Spottiswoode Residences and The Scala — which elevated the group’s order books to S$762 million, providing the company with a steady stream of revenue until its 2013 financial year, it said.
Lian Beng believes that the outlook for the construction sector will stay positive over the next 12 months, due to a mix of heightened en-bloc activity, strong economic growth and the launch of various public infrastructure projects.