Boosted by property development, construction segments.
Tiong Seng has clawed its way back into the black as it posted an FY15 net profit of $14.75m, a far cry from the almost $29.63m net loss it booked in the preceding year.
According to the company’s media release, contributions from both its construction and property development businesses boosted Tiong Seng’s earnings.
Meanwhile, the company’s revenue saw a 15.7% YoY slide to $563.8m. Revenue from its construction arm, which comprises 85.5% of the year’s revenue, tumbled 23.1% YoY to $482.2m as revenue for completed projects were recognised in varying stages.
In contrast, the development properties segment’s revenue more than doubled YoY to $71.8m for FY15.
Looking forward, group CEO Pek Lian Guan comments that the company is accelerating marketing efforts which led to more robust sales momentum for its existing properties. He adds that with a gradual completion of its projects, Tiong Seng expects progressive cash flow returns that would ease its overall gearing level.
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