mr funny
10-02-11, 16:32
http://www.businesstimes.com.sg/sub/companies/story/0,4574,425327,00.html?
Published February 10, 2011
Sim Lian Q2 earnings jump 75% to $53.7m
Construction arm, lower costs, disposal gain help results
By MICHELLE QUAH
PROPERTY developer, Sim Lian Group, has reported better earnings for the second quarter ended Dec 31, 2010, on the back of improved takings from its construction division, lower contract costs and an asset disposal gain.
The group's revenue for the three months grew 3 per cent to $172 million, from $166.5 million the year before.
Its net profit attributable to shareholders amounted to $53.7 million - a 75 per cent jump from the $30.6 million a year ago. Much of the increase came from the 52 per cent year-on-year jump in operating profit to $55.2 million in the December 2010 quarter. Also helping was a $7.7 million exceptional gain on disposal of asset held for sale.
Sim Lian said that its property development division contributed $119.9 million to the group's revenue that quarter, a decrease of 4 per cent from the $125.4 million the year before. It said that the decrease was due mainly to a fall in revenue contribution from its property project, Carabelle.
It also said that revenue from the external projects of its construction division contributed $45.5 million to the group's revenue - an increase of 30 per cent from the $35.1 million the year before. 'The higher revenue contribution was mainly due to the higher percentage of completion recorded in (the quarter just ended),' it said.
Sim Lian also recorded lower contract costs in the December 2010 quarter - $111.4 million, down 13 per cent from the $127.6 million a year ago. It said that the drop was due mainly to a revision of contract costs for its development projects, as well as the finalisation of sub-contractor accounts for its completed construction projects.
Its earnings per share for the quarter was 6.31 cents, up from 3.59 cents the year before - which was adjusted for a bonus share issue in the December 2010 quarter.
The group said that it expects to achieve profitable operating results for the full year ended June 30, 2011. It said that its construction division will remain selective in all tenders, 'to ensure jobs are secured with reasonable prices and margins', in light of the recent property measures announced by the government.
It added that its wholly owned subsidiary, Sim Lian Land Pte Ltd, and Sim Lian Development Pte Ltd, a wholly owned subsidiary of its controlling shareholder, Sim Lian Holdings Pte Ltd, have been jointly awarded a tender for a land parcel located at Punggol Central/Punggol Walk in December 2010 - but that this project is not expected to contribute to the group's results in FY2011.
Sim Lian shares ended unchanged at 45.5 cents yesterday.
Published February 10, 2011
Sim Lian Q2 earnings jump 75% to $53.7m
Construction arm, lower costs, disposal gain help results
By MICHELLE QUAH
PROPERTY developer, Sim Lian Group, has reported better earnings for the second quarter ended Dec 31, 2010, on the back of improved takings from its construction division, lower contract costs and an asset disposal gain.
The group's revenue for the three months grew 3 per cent to $172 million, from $166.5 million the year before.
Its net profit attributable to shareholders amounted to $53.7 million - a 75 per cent jump from the $30.6 million a year ago. Much of the increase came from the 52 per cent year-on-year jump in operating profit to $55.2 million in the December 2010 quarter. Also helping was a $7.7 million exceptional gain on disposal of asset held for sale.
Sim Lian said that its property development division contributed $119.9 million to the group's revenue that quarter, a decrease of 4 per cent from the $125.4 million the year before. It said that the decrease was due mainly to a fall in revenue contribution from its property project, Carabelle.
It also said that revenue from the external projects of its construction division contributed $45.5 million to the group's revenue - an increase of 30 per cent from the $35.1 million the year before. 'The higher revenue contribution was mainly due to the higher percentage of completion recorded in (the quarter just ended),' it said.
Sim Lian also recorded lower contract costs in the December 2010 quarter - $111.4 million, down 13 per cent from the $127.6 million a year ago. It said that the drop was due mainly to a revision of contract costs for its development projects, as well as the finalisation of sub-contractor accounts for its completed construction projects.
Its earnings per share for the quarter was 6.31 cents, up from 3.59 cents the year before - which was adjusted for a bonus share issue in the December 2010 quarter.
The group said that it expects to achieve profitable operating results for the full year ended June 30, 2011. It said that its construction division will remain selective in all tenders, 'to ensure jobs are secured with reasonable prices and margins', in light of the recent property measures announced by the government.
It added that its wholly owned subsidiary, Sim Lian Land Pte Ltd, and Sim Lian Development Pte Ltd, a wholly owned subsidiary of its controlling shareholder, Sim Lian Holdings Pte Ltd, have been jointly awarded a tender for a land parcel located at Punggol Central/Punggol Walk in December 2010 - but that this project is not expected to contribute to the group's results in FY2011.
Sim Lian shares ended unchanged at 45.5 cents yesterday.