Building construction company Lian Beng Group has reported a profit attributable to shareholders of $24.0 million for the financial year ended 31 May 2010 (FY10), compared to $17.0 million in 2009 (FY09).

Lian Beng says the 41% year-on-year jump in profitability was driven by strong performance across the group’s construction, property development and ready-mixed concrete divisions.

On the back of increased contribution from the group’s property development and ready- mixed concrete business divisions, revenue for FY10 rose 12% to hit a record $345.7 million, from $308.4 million in FY09. FY10 earnings per share surged 41% to 4.54 cents versus 3.21 cents the year before.

During the year, the group expanded its ready-mix concrete business, with the addition of a second batching plant as well as purchase of machinery and mixer trucks. Accordingly, this segment registered an 82% increase to $18.3 million from $10 million, contributing about 5% of total revenue.

As for its mainstay construction business, the group was awarded five building contracts worth about $530 million for the construction of private residential developments The Gale, Waterfront Key, Waterbank@Dakota, Centro Residences, and The Laurels. The addition of these contracts, coupled with the $88 million condominium contract at Spottiswoode Park Road secured at the beginning of FY11 brings the group's order book to $846 million.

Due mainly to the progress made in the construction of OLA Residences, the group’s property development segment recorded a surge in revenue to $28.7 million from $1.2 million. Also during the year, the group launched its 25%-held Lincoln Suites, a 175-unit freehold luxury condominium development located at the junction of Khiang Guan Avenue and Lincoln Road. More than 50% having been sold to date.

Gross profit leaped 22% to $45.3 million from $37.1 million, as revenue growth outpaced cost of sales. Accordingly, gross margin was also higher at 13% compared to 12% previously.

The group is declaring a first and final cash dividend of 0.4 cents per share, and a special dividend of 0.4 cents per share. Together, this represents a dividend payout ratio of 17%.