George Kent’s net profit rises, revenue down in 1Q

By KEVIN WONG / Pic By TMR

George Kent Malaysia Bhd’s net profit rose 16.2% year-on- year to RM21.5 million for the first quarter ended April 30, 2018 (1Q18), despite revenue falling from RM129.42 million in 1Q17 to RM99.76 million for the period.

“Construction projects were executed well and on time; and over the last three years, we witnessed a compound growth of 24% from its metering business.

“The group will increase its resources substantially in terms of manpower as well as financial going forward — in order to accelerate the growth in its metering and other water- related businesses, investments merger, acquisitions and strategic partnerships,” its chairman Tan Sri Tan Kay Hock noted in a release to Bursa Malaysia yesterday.

The group’s long strategic plan remains to broaden its income base by substantially increased income from the metering and other water-related businesses and investments.

The engineering and metering group — which currently owns a stake in a water treatment plant located in Port Moresby, Papua New Guinea — is looking to further grow its recurring income investments in water utilities and concessions, the company said.

George Kent’s balance sheet has remained strong with a net cash position of RM343.5 million.

It has an outstanding orderbook of RM5.3 billion, which will continue to provide earnings visibility in the medium term.

The company’s shareholders recently approved a share buy-back plan after its stock price fell sharply following Pakatan Harapan forming the ruling government.

The share price weakness wiped some RM1.2 billion off its market capitalisation since May 8.

George Kent rose eight sen, or 5%, to RM1.54 at the close yesterday on the back of its improved financial quarter.