Builder and developer Sim Lian Group recorded a profit before income tax of $14.8 million in 1QFY2011, 58% lower than the $35.5 million recorded in 1QFY2010.

Revenue from property development division contributed $92.0 million to the group’s revenue in 1QFY2011 compared to $156.3 million in 1QFY2010, a decrease of 41%.

The decrease in revenue from property development division was mainly due to decrease in revenue contribution from a project which obtained Temporary Occupation Permit in July 2009 and several other projects which showed decrease in revenue contribution due mainly to fewer number of units sold and lower percentage work done in 1QFY2011 compared to that in 1QFY2010.

Revenue from external projects of the construction division contributed $26.5 million to group revenue in 1QFY2011 compared to $31.7 million in 1QFY2010, a decrease of 16%. The decrease in revenue from external projects is due to two new projects being at the preliminary stages of construction.

Contract costs were similarly lower at $104.1 million in 1QFY2011, compared to $153.6 million in 1QFY2010, a decrease of 32%. The decrease in contract costs was in tandem with the 35% decrease in revenue from $194.4 million in 1QFY2010 to $125.4 million in 1QFY2011.

Employee benefits expense increased by 16% from $1.8 million in 1QFY2010 to $2.2 million in 1QFY2011, mainly due to cessation of job credit scheme. Job credit scheme which was introduced in Singapore Budget 2009 has ceased with the final payment in June 2010.

Other operating expenses in 1QFY2011 were $1.6 million. Other operating expenses in 1QFY2010 would have been $1.7 million had the reversal of allowance for doubtful trade receivables of $0.6 million been excluded, comparable with the $1.6 million.