Lum Chang Holdings announced earnings of $3.0 million for its FY2021 ended June, reversing out of a $2.1 million loss in FY2020.
This came on the back of a 1% increase in revenue to $325.6 million from $322.7 million a year ago. This was mainly due to higher revenue of $24.6 million generated from the property segment, offset by the decrease in revenue from the construction segment of $22.3 million.
The increase in revenue from property segment arose mainly from more units sold from the group's residential developments in Singapore and Malaysia, which resulted in an increase in revenue recognition of $27.4 million. The decrease in revenue from construction segment was mainly due to slower progress arising from Covid-19 measures and restrictions imposed at construction sites.
Other income was 20% higher y-o-y at $7.9 million, mainly comprised interest from bank deposits and grant income. Other income for FY2021 was higher due to increase in Covid-19 related financial support received from the Singapore government, offset by lower interest income.
During this period, the group recognised other gains of $8.3 million, compared to other losses of $18.2 million a year ago, due to a one-off fair value gain of $16.5 million on the group's freehold property in the UK that was recognised in FY2021. The gain was offset by $8.5 million fair value loss on investment in an unquoted company. During the preceding year, total fair value loss of $17.3 million was recognised on the group's freehold property under development in the UK and the group's leasehold property in Singapore.
As at end-June, cash and cash equivalents stoof at $99.5 million.
Lum Chang has declared a final dividend of 1.0 cent per share, unchaged from the previous year.
Shares in Lum Chang closed at 42 cents on Aug 24.
Photo: Lum Chang
