SINGAPORE (Aug 25): LTC Corporation, formerly known as Lion Teck Chiang, has posted earnings of $8.6 million for the full year ended June, up 24.4% from earnings of $6.9 million a year ago.

Revenue rose 3.5% to $134.1 million in FY2017, from $129.6 million a year ago.

The higher revenue was attributable to a $14.6 million increase in steel turnover to $107.5 million in FY2017, due to higher steel prices and higher tonnage delivered.

Net operating profit for LTC’s steel business surged to $6.1 million, improving $8.6 million from a loss of $2.5 million a year ago.

The increase was partially offset by a $10.0 million decline in revenue from its property development business, which fell to $18.8 million in FY2017.

Revenue for its property rental segment remained unchanged.

Gross profit grew by 69.0% to $22.6 million, as cost of sales fell 4.1% to $111.5 million.

Including the share of results of joint venture and associated companies, net operating profit for increased by 68.8% to $12.9 million, from $7.7 million a year ago.

As at end June, cash and cash equivalents stood at $48.9 million.

The group has declared a first and final dividend of 1 cent per share for the period.

Looking forward, LTC Corp says competition among suppliers in the steel business is likely to continue to be intense as construction demand is expected to remain weak.

The group also remains cautious in its outlook for its property development and property rental segments.

Shares in LTC Corp last closed half a cent higher at 62.5 cents on Thursday.