SINGAPORE (Apr 12): SLB Development, the development spin-off from Lian Beng Group, today announced that it has made a loss of $3.5 million in 3Q19, compared to earnings of $1.9 million in 3Q18.

This was mainly due to lower revenue and share of losses from joint ventures and associates.

For the 9M19 period, the group recorded a loss of $6.5 million, compared to earnings of $14.5 million in 9M18.

During the quarter, SLB saw a 76.7% plunge in revenue to $7.7 million from $32.9 million a year ago, mainly due to lower revenue contribution from the group’s industrial property development project, T-Space @ Tampines in 3Q19 as the project was substantially completed in June 2018. The development projects which contributed to the revenue this quarter were T-Space @ Tampines and Mactaggart Foodlink.

Cost of sales declined by 86.8% y-o-y to $3.3 million, bringing gross profit for 3Q19 to $4.3 million, 42.9% lower than $7.6 million last year.

Sales and marketing expenses dropped by 37.9% y-o-y to $653,000, while other operating expenses significantly increased to $226,000 from $83,000 in the previous year.

During the quarter, the group registered a loss of $4.6 million in share of results of joint ventures and associates, compared to a gain of $0.6 million in 3Q18, mainly due to share of losses from associates of $4.5 million, which was the result of the effect of borrowing costs adjustments made to Affinity @ Serangoon and Riverfront Residences.

As at end-Feb, the group’s cash and cash equivalents stood at $34.7 million.

SLB listed on the Catalist board of Singapore Exchange on Apr 20, 2018. The stock closed at 14 cents on Friday, 44% lower compared to 25 cents when it first listed.