Glomac 1Q18 net profit drops 32% to RM1m

By SHAZNI ONG / Pic By TMR File

Glomac Bhd net profit for the first quarter ended July 31, 2018 (1Q18), declined 32% year-on-year (YoY) to RM1 million due to the absence of a one-off reversal of provision for foreseeable loss and write-back of accrued construction cost recorded in 1Q17.

In a filing to the exchange yesterday, the property developer posted a 40% YoY decline in revenue to RM57.6 million due to lower construction activities during the quarter.

Turnover for the period was mainly contributed by progressive billings from the Bandar Saujana Utama, Sri Saujana and Saujana KLIA (Kuala Lumpur International Airport) projects.

Glomac’s balance sheet remained robust as net gearing improved further to 0.28 times compared to 0.3 times as at the end of the 2018 financial year (FY18) with the company’s financial position still strong as net gearing levels continue to be manageable.

Glomac intends to step-up the pace of new launches to capitalise on the improved consumer sentiment brought about by the change in government.

“Upcoming launches in FY19 totalling RM1 billion will remain in the mid-market and affordable segments, while the landed residential projects in townships such as Saujana Perdana in Sungai Buloh, Selangor, and Saujana Jaya in Kulai, Johor, continue to sustain steady sales,” Glomac noted in a statement yesterday.

Glomac expects the property sector to remain challenging as slow wage growth and tight lending policies continue to impact sales.

“The group is hopeful the strong suite of mid-market and affordable product offerings will appeal to millennial buyers who make up the largest first-home buyer demographic,” it added.

The strong portfolio of potential developments with a gross development value of RM9 billion puts the group in a good position to continue offering products to the mass market.