SLB Development, the property development subsidiary of construction firm Lian Beng Group, has posted earnings of $5.54 million for the 1HFY2021 ended November, registering a marginal 0.9% increase compared to earnings of $5.49 million a year ago.

This translates to earnings per share (EPS) of 0.61 cents on a fully diluted basis, compared to 0.60 cents in 1HFY2020.

Revenue for the 1HFY2021 fell 4.9% y-o-y to $19.0 million due to the implementation of safe management measures at work sites, thereby causing a slowdown in the construction progress of the group’s projects.

Gross profit fell by 23.6% y-o-y to $6.4 million, mainly attributable to the lower revenue posted during the half-year period.

Other operating income decreased by 34.1% y-o-y to $2.2 million due to the absence of forfeiture income of $0.6 million, as well as the absence of the $0.6 million gain on disposal of a subsidiary.

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However, share of results of joint ventures and associates stood at $1.5 million in profit for the 1HFY2021 compared to the $0.6 million loss in 1HFY2020.

The increase was primarily due to increases in development projects recognised from Affinity @ Serangoon, Riverfront Residences and Rezi24 as additional units were sold.

Tax expense for the half-year fell 35.7% y-o-y to $0.8 million due to a decrease in profits recognised in 1HFY2021.

As at Nov 30, 2020, cash and cash equivalents stood at $29.6 million.

In its release statement on Jan 14, the group says its properties development progress has been affected due to the implementation of safe management measures, despite the gradual resumption of activities after the circuit breaker that was imposed from April to June 2020.

“While the group expects possible delay in the completion for some of our development projects, the group will continue to actively monitor the progress to ensure smooth development and completion of our projects and focus on taking the necessary initiatives to moderate any financial impact arising thereon,” it says.

“The group is cautious when seeking opportunities to replenish its land bank and will continue to explore business opportunities in the region through acquisition, joint ventures and/or strategic alliances that will complement its property development business. It will also prudently seek suitable opportunities to diversify its income streams further for sustainable future growth,” it adds.

Shares in SLB closed flat at 11 cents on Jan 14.