Revenue for 3Q17 dropped 10.2% to $27.6 million mainly due to the completion of some projects and the decrease in sale of construction materials in the quarter. But gross profit improved 50.1% to $4.4 million mainly due to lower cost as a result of better usage and deployment of internal resources.
Other income for 3Q17 increased by $8.4 million to $9.1 million mainly due to the gain on disposal of the office building at 55 Kranji Crescent together with the plant and equipment of $7.8 million in the quarter.
Ley Choon says the three consecutive profitable quarters and the disposal of assets referred above have enabled the group to reduce its borrowings and improve its financial position.
Total long-term and short-term borrowings have reduced by $35.5 million from $110.7 million as at March 31 2016 to $75.2 million as at Dec 31 2016.
The group has secured a new contract from the Public Utilities Board amounting to $2.7 million in November 2016. The group’s unfulfilled order book now stands at $157 million, providing a sustainable revenue flow.
Shares of Ley Choon closed at 2.6 cents on Friday.
