Following the lifting of the circuit breaker, resumption of work has remained “slow”, with disruptions in foreign workforce deployment. The additional time and costs incurred in complying with safe distancing measures affected revenue negatively as well.
The lower revenue was mitigated by the Covid-19 support grants from the Singapore, says the group.
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Gross profit stood 47.3% lower y-o-y to $24.8 million due to lower occupancy in the dormitory business and rental rebates given to tenants.
Contributing to the group’s bottom line was a turnaround in its share of profit from joint ventures after its disposal of a joint venture in April 2020, as well as improved profitability in its property development business.
Earnings per share (EPS) for the 1HFY2021 stood at 3.52 cents on a fully diluted basis, down from the 3.72 cents in 1HFY2020.
No dividend has been recommended for the period, compared to the 1 cent per share in 1HFY2020.
As at Nov 30, 2020, cash and cash equivalents stood at $194.2 million.
SEE: Hit by construction halt, Lian Beng Group earnings fall 12.8% y-o-y in FY2020
Going forward, Lian Beng says it expects operating conditions in the construction sector to remain “challenging” with a limited level of activity amid pandemic-related measures.
“Amid the evolving Covid-19 situation in the region, the supply chain for materials may also be disrupted. As a result, costs to complete the construction projects may be impacted,” it says.
“Amid the uncertain operating climate, the group is cognisant of the need to prioritise cash conservation and cost control, and has not declared any interim dividend for 1HFY2021. The funds will be retained to ensure that it is able to meet its working capital requirements and has the ability to capitalise on potential investment opportunities,” it adds.
Shares in Lian Beng closed flat at 44 cents on Jan 14.
