SINGAPORE (Nov 8): Soilbuild Construction Group’s earnings fell 25.8% to $2.2 million for 3QFY16, compared with the earnings of $3 million in 3QFY15.

Revenue rose 31% to $102.4 million with contributions from the Jalan Lam Huat industrial project, the Yishun HDB project, the Sembawang HDB project, the Ang Mo Kio HDB project, the Goodwood Grand residential projectat Balmoral Road, and the hospice project at Thomson Road.

However, gross profit margins fell by 3.2 percentage points to 4.8%, as there was a higher proportion of revenue recognised from HDB projects which command lower margins, and an increase in construction costs.

Other income doubled to $0.5 million from the increase in rental income, grants received for employment credit and BCA schemes, and an increase in service income. Other losses fell 0.6% to $0.2 million came from the loss on disposal of property, plant and equipment, which was mitigated by foreign exchange gains.

Administrative expenses decreased 18.3% to $2.0 million, while other operating expenses doubled to $0.5 million. Share of profit of joint ventures also tripled to $7,000.

Soilbuild says that the tenders for construction works in the private sector is expected to remain competitive because of the slowdown in the general market conditions. However, it added that public sector construction contracts are set to increase and the group will focus on tendering for local construction works in both the private and public sectors.

The group did not declare any dividends for the current financial period.

Shares in Soilbuild closed unchanged at 21.5 cents on Tuesday.