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Lian Beng Group reports 66.7% earnings jump for FY2022

The Edge Singapore
The Edge Singapore7/27/2022 09:07 PM GMT+08  • 2 min read
Lian Beng Group reports 66.7% earnings jump for FY2022
The company plans to pay a final dividend of two cents per share, bringing full year payout to three cents
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Lian Beng Group has reported earnings of $43.5 million for FY2022 ended May, up 66.7% y-o-y.

Revenue in the same period was up by more than half, or 53.2% y-o-y to $788.3 million, with better performance seen across its various businesses.

The company plans to pay a final dividend of 2 cents per share, bringing FY2022’s total payout to 3 cents.

As at July 27, the company has a construction order book of $1.7 billion.

Ong Pang Aik, the company’s chairman and managing director says that the FY2022 result is an indication of the “resilience” of Lian Beng’s diversification strategy.

“Our construction business continued to contend with challenging conditions of labour shortage, supply chain disruptions and rising costs.

See also: Banyan Tree announces improved earnings in business update

“Thankfully, our property development, investment holdings and dormitory businesses performed well, and their positive contribution to the Group’s bottom line has enabled us to turn in a decent set of results,” adds Ong.

Going forward, Lian Beng expects labour shortage and costlier construction materials to pose further “operational challenges”.

The company warns of possible higher financing costs because of higher rates, which may affect its overall margins.

See also: CDL reports high occupancies for Singapore office, recovery in retail and hotel portfolios

Lian Beng will also maintain “financial prudence” when seeking out new plots for its property development business, “in view of the additional property cooling measures implemented by the Singapore government.”

Lian Beng shares closed on July 27 at 50 cents, unchanged for the day and down 7.41% year to date.

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