Lian Beng Group, the homegrown building construction group, says net profit doubled to $22.7 million for the six months ended November 2010 (1H11), compared to $11.4 million for the six-months ended November 2009 (1H10). This came on the back of a 58.2% rise in revenue to $249.3 million.

The improvement in top-line was mainly driven by higher revenue recognition for the construction of various projects, as well as contribution from the property development and ready-mixed concrete business segments. Due to prudent cost management, the group’s gross profit margin registered an improvement to 15.6%, from 13.3% in 1H10.

At the close of November 2010, cash and cash equivalents increased by $63.9 million to $100.9 million as at 30 November 2010, compared to $37.0 million on 30 November 2009.

Lian Beng clinched two new contracts worth $207.8 million collectively, for the construction of private residential developments The Scala and Spottiswoode Residences. The Group also signed an option with the Singapore Exchange to acquire a light industrial building along New Industrial Road for $23.6 million.

Going forward, the group expects trends in the construction industry to remain positive over the next 12 months, driven by Singapore’s economic growth, resumption in en-bloc sales activity, as well as the rollout of several public infrastructure projects. Leveraging its financial strength and sound track record, Lian Beng will continue to participate in the tender for more contracts in both the public and private sectors.

As at 30 November 2010, the Group’s order book stood at a healthy $762 million, which should provide it with a steady flow of revenue through FY2013.