Gabungan AQRS profits fall 68% in Q4
PETALING JAYA: Gabungan AQRS Bhd posted a 68.4% decline in net profit to RM10.95mil in the fourth quarter ended Dec 31, 2018 from RM34.63mil a year earlier.
In a filing with Bursa Malaysia, the group said the lower profits was due to one-off items comprising of RM14.6mil in liquidated ascertained damages (LAD) provision for its Johor Bahru City Centre development, The Peak, and reversal of impairment for receivables in respect of MFRS adjustment.
“Excluding these items, the Group’s core net profit for the quarter stood at RM17.6mil, an 8.3% increase from 4Q17,” it said in a statement.
Revenue for the quarter fell 26% to RM108.52mil from RM146.56mil previously. Gabungan said the lower revenue was because of slower progress works at LRT 3 project following the review by the government.
“The group has signed the Novation Agreement for LRT3 on February 22 2019, and the work progress for LRT3 project will be back on track soon.
“Subsequently the LRT3 project is expected to start contributing positively to the revenue and earnings in the coming quarters,” Gabungan said.
Its construction division in the fourth quarter reported a lower revenue of RM135.1mil compared to RM148.8mil in 4Q17.
It said revenue for the current quarter was mainly contributed from the work progress for the Pusat Pentadbiran Sultan Ahmad Shah (PPSAS) and Sungai Besi – Ulu Kelang (SUKE) Highway.
Cumulatively, for the full financial year 2018, Gabungan posted a 5.7% decline in net profit to RM63.67mil compared to RM67.43mil in 2017.
Revenue for the period increased by 25% to RM63.57mil from RM67.43mil previously.
Gabungan said it aims to grow its construction orderbook by RM1.5bil by the first half of this year, stemming from infrastructure-related jobs which it has tendered for.
On property development, the group said it is targeting a RM500mil sales target on the back of RM941mil in new launches for its projects in Puchong and Johor Bahru City Centre.
“I am pleased to announce the group has achieved a record year in terms of core net profit in spite of the sector headwinds.
The business operations of the group remain solid in all fronts including its operational and financial fronts,” said Gabungan group CEO Datuk Azizan Jaafar in a statement.
Aside from Gabungan’s outstanding construction orderbook of RM2.2bil, which will sustain earnings till beyond 2021, Azizan said the group property development division would propel its earnings and cashflows in 2019, driven by our E’Island Lake Haven and The Peak projects. “The Peak alone could generate operating cashflows of over RM384mil,” he said.
Source : TheStar