SINGAPORE (Aug 22): Lum Chang, the property developer and construction company, announced FY17 earnings dropped 37% to $18.7 million from $29.5 million in FY16.

This came on the back of a 13% decrease in revenue to $369.0 million from $426.1 million, mainly due to lower revenues of $53.9 million recognised from two of the group’s Malaysian developments and lower revenues from completed construction projects amounting to $173.6 million.

The lower revenue was however partially offset by higher revenue recognition of $171.1 million for three ongoing construction projects.

The group’s finance expenses for FY17 stood at $5.7 million, an increase of 12% from $5.0 million last year.

This was mainly due to an increase in bond interest expense of $2.1 million on the group’s $50 million unsecured fixed rate notes that were issued in March 2016.

Cash and cash equivalents stood at $130.8 million as at June 30 compared to $100 million the same time last year.

In a separate filing, the group also announced it has exercised the option to purchase One Tree Hill Gardens for $65 million to be redeveloped into landed homes for sale.

The acquisition will be funded by internal funds and external borrowings.

Looking ahead, Lum Chang says it continues to exercise vigilance to keep its cost structure tight, while exploring viable business opportunities and pursing construction projects on a selective basis.

Shares in Lum Chang closed at 36 cents on Tuesday.

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