Glomac’s net profit drops 58% in 4Q

Moving forward, the group plans to launch products with a total estimated GDV of RM900m

by NUR HAZIQAH A MALEK / pic by TMR FILE

GLOMAC Bhd’s net profit has decreased by 57.61% year-on-year (YoY) for its fourth quarter (4Q) to RM10.1 million against RM23.83 million previously.

In an exchange filing to Bursa Malaysia last Friday, the company noted that its net profit decreased due to higher base arising from allowance for foreseeable losses on property development and write-back of accrued construction costs no longer required.

Its revenue had also decreased by 13.53% YoY to RM80.94 million versus RM93.6 million posted previously, due to the decline in its property development segment’s revenue.

For its year-to-date performances, Glomac had also posted a decrease in its net profit to RM13.6 million from RM31.13 million, while its revenue fell to RM273.34 million from RM402.41 million.

Despite recording lower numbers, the group noted its higher new sales of RM323 million during the year was driven by [email protected] 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 said.

As of the date above, Glomac’s balance sheet stood at a cash position of RM154.7 million.

“Net gearing remained at a very manageable 0.31 times 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 approximately 74%.

Moving forward, the group plans 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 (SOHO) at 121 Residences, Petaling Jaya-Damansara, which has a GDV of RM321 million.

“The overall market environment is expected to remain challenging.

“Nonetheless, 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,” it said.