Singapore property developer Sim Lian Group saw strong earnings in the second fiscal quarter, on the back of lower contract costs, gains in asset disposal and improved takings from its construction division.
Sim Lian’s revenue climbed three percent to S$172 million in Q2, from S$166.5 million over the same period a year ago, while operating profit rose 52 percent year-on-year to S$55.2 million.
The company said its property development division contributed S$119.9 million to the Q2 revenue, down four percent from the previous year’s S$125.4 million. This was attributed mainly to the decline in revenue contribution from the Carabelle project.
Meanwhile, revenue contribution from the construction division increased 30 percent to S$45.5 million in the second quarter. “The higher revenue contribution was mainly due to the higher percentage of completion recorded (in the quarter just ended),” the company said.
Looking forward, Sim Lian expects to achieve strong operating results for the fiscal year ended 30 June 2011. It added that the construction division will remain selective in all tenders to “ensure jobs are secured with reasonable prices and margins.”