SINGAPORE (July 26): Lian Beng Group posts earnings of $53.2 million for the full year ended May, a decline of 48.3% from earnings of $102.9 million a year ago.

The group has proposed a final dividend of 1.25 cents per share, bringing the total dividend for the year to 2.25 cents per share. This is lower than the total dividend of 3 cents per share paid last year.

Group revenue for FY2017 fell 36.8% to $281.7 million, from $445.4 million a year ago.

The decline was led by a 70.3% drop in revenue from its construction business to $103.5 million, and a 21.1% fall in revenue from its ready-mixed concrete segment to $56.2 million.

Lian Beng's gross profit increased 33.5% to $74.9 million in FY2017, mainly due to the recognition of profit upon completion of the industrial development project, Mandai Foodlink.

Share of results of associates and joint ventures fell to $15.7 million in FY2017, compared to $99.7 million a year ago.

This was higher in FY2016 mainly due to the completion of the associates' and joint ventures' development projects, as well as fair value gain of associates' investment properties.

Cash and cash equivalents stood at $187.8 million as at May 31, 2017.

The group says its “strong balance sheet with healthy cash level” allows it to continue to explore local and overseas opportunities to further expand its business.

“We will continue to diversify our income streams which has helped us reduce the reliance on any one sector,” says executive chairman Ong Pang Aik.

“We will continue exploring business expansion through local or overseas acquisition, joint venture and/or strategic alliances that complement its construction, property development and investment business,” Ong adds.

Shares of Lian Beng closed half a cent lower at 62.5 cents on Wednesday.