http://www.businesstimes.com.sg/arch...opment-revenue

Published May 12, 2012

Sim Lian Q3 profit halves on lower development revenue

By michelle tan


PROPERTY developer Sim Lian Group Ltd posted a 57 per cent drop in net profit to $22.8 million for the third quarter ended March 31, from a restated $52.6 million a year earlier.

Earnings per share came to 2.5 cents, against 6.2 cents previously.

The earnings fall came as Q3 revenue from the property development division fell 66 per cent year on year to $89.4 million. The fall was attributed mainly to Parc Lumiere, which obtained its TOP in Q3 FY2011. As the latter was a public-housing project, it was accounted for using the completion of construction method, which resulted in the entire revenue and expenses of the project being recognised during Q3 FY2011.

Together with other revenue streams, Sim Lian recorded a topline of $142.5 million, down 52 per cent from a restated $293.9 million for the corresponding period last year.

Contract costs also declined in line with revenue, falling 52 per cent year-on-year to $106.1 million in the quarter from $221.1 million last year.

For the first nine months of the financial year, the firm recorded a net profit of $160.6 million, up 39 per cent from a year earlier.

But nine-month revenue fell 5 per cent to $533.7 million over the same period.

Net asset value per share as at end-March was 68.72 cents, up from 56.29 cents in end-June last year.

Cash and cash equivalents at the end of the period stood at $174.8 million.

Yesterday, Sim Lian's shares closed 3 cents or 5 per cent higher at 63 cents.