Glomac’s 4Q numbers hit by weaker sales

By NUR HAZIQAH A MALEK / Pic By TMR

Glomac Bhd’s net profit fell by 57.61% year-on-year (YoY) to RM10.1 million for its fourth quarter ended April 30, 2019 as revenue decreased by 13.53% YoY to RM80.94 million due to the decline in its property development revenue.

For the full financial year, Glomac net profit fell to RM13.6 million from RM31.13 million in FY18 while revenue fell to RM273.34 million from RM402.41 million in FY18.

Despite recording lower numbers, the group noted higher new sales of RM323 million during the year driven by Plaza @ Kelana Jaya, its flagship project which achieved a take-up rate of 71% and sales from newly launched phases in its existing townships.

“The strong sales performance during the year brought unbilled sales up to RM476 million as at April 30, 2019,” it stated in an exchange filing yesterday. Glomac’s balance sheet stood at a cash position of RM154.7 million.

“Net gearing remained at a very manageable 0.31x against shareholders’ funds of RM1.1 billion,” it said.

The group also added that new anchor tenants, including Jaya Grocer supermarket and its Bonjour Garden Cafe have signed long-term leases at its Glo Damansara Mall, which increased its occupancy to 74%.

Moving foward, the group plans a to launch products with a total estimated gross development value (GDV) of RM900 million, headlined by its upcoming serviced apartments and small office/home offices at 121 Residences, PJ-Damansara, which has a GDV of RM321 million.

“The overall market environment is expected to remain challenging. The group’s balance sheet remains healthy with a manageable net gearing position and a strong pipeline of potential developments with an available GDV of RM8 billion,” Glomac’s filing noted.