LETTER TO SHAREHOLDERS
KIM CHUAN DEPORT COMPLETED IN 2007
TELOK BLANGAH EXPRESSWAY PROJECT COMPLETED IN 2001
In FY2014, the Group reached a significant milestone since our
decision to diversify into the property development business
back in 2011. In November, our first industrial development
project, Ark@Gambas, had obtained the Temporary Occupation
Permit (“TOP”) from the Building & Construction Authority. This
achievement proved that our strategic decision to move into this
business segment was timely.
Performance Review
During the year ended 31 December 2014, the Group achieved a
202% jump in revenue to $261.6 million, mainly due to the $193.5
million sales recognized from the Ark@Gambas project. There
were no sales recognized from the property development segment
in the previous financial year.
Our net profit for FY2014 increased 204% to $72.6 million,
resulting mainly from the profit recognition of the property
development project and finalization of accounts from our
completed construction projects.
We continue to enjoy a healthy financial position with our cash
equivalents increasing 60.9% to $165.5 million and shareholders’
equity rising 44.7% to $205.3 million.
Dividends
With our sterling performance achieved in FY2014, we would
like to share the fruits of our labour with our shareholders. In
appreciation of your unwavering support for the Group, the
Directors have proposed a final cash dividend of 4.0 cents per
ordinary share, which is 222% higher than the previous year. This
proposed dividend distribution, when approved by shareholders
at the forthcoming Annual General Meeting on 28th April 2015,
represents about 28% of FY2014’s profit.
Business Update
During the year in review, the Civil Engineering construction
segment was successful in securing new contracts in 2014 and
early 2015, thus rebuilding our order book to $450 million as at
end January 2015. The new projects, which were awarded and
commenced work in 2014, were for the construction of taxiways
and aircraft parking stands at the former south end reservoir site
for Changi Airport Group and the construction of Maxwell station
on the new Thomson East Coast Line for the Land Transport
Authority. The contract value for the two projects amounted to
$327.3 million.
In January 2015, the Group was awarded the Design and
Construction of Rail Stabling Yard at Gali Batu Depot by the Land
Transport Authority for $137.4 million. The average construction
period for the above projects is about 4 to 5 years.
Dear Shareholders,
Hock Lian Seng Holdings Limited
Annual report 2014
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