Glomac posts RM8.62m net loss in 4Q on Covid-19 impacts

by FARA AISYAH / pic by TMR FILE PIX

Glomac Bhd posted a RM8.62 million net loss in the fourth quarter ended Apr 30, 2020 (4QFY20) against RM11.22 million net profit last year due to fair value loss on investment properties.

In an exchange filing yesterday, the developer said Covid-19 pandemic and movement control order (MCO) have contributed to the fair value loss of Glo Damansara mall which revenue mainly arose from carpark rental and mall rental income.

The group also recorded a 1.11 sen loss per share compared to 1.44 sen earnings per share in 4QFY19.

Glomac’s quarterly revenue declined 27.87% year-on-year (YoY) to RM58.39 million from RM80.95 million in February to April 2019.

For the full year, Glomac’s net profit decreased 14.61% YoY to RM12.57 million, while revenue dipped 10.01% YoY to RM245.8 million against FY19.

The developer said revenue for FY20 was mainly driven by steady construction progress from ongoing phases at Saujana Perdana and Saujana Rawang, as well as Plaza@Kelana Jaya.

During the year, Glomac achieved new sales of RM385 million, an increase of 19% as compared to FY19, mainly driven by the success of 121 Residences serviced apartments and affordable landed residential phases at Saujana Perdana.

Glomac said its performance is expected to sustain moving forward, backed by unbilled sales of RM650 million and RM612 million new projects ready for launch in FY21.

The new launches comprise a strong mix of affordable high rise like GreenTec Puchong and landed residential projects at Saujana Perdana in Sungai Buloh and Saujana KLIA in Sepang.  

“On the macro front, the property market is likely to remain challenging as the group recovers from the negative economic uncertainties brought on by the Covid-19 pandemic and its ensuing MCO.

“However, the easing of the MCO and lower interest rate environment coupled with the reintroduction of the Home Ownership Campaign (HOC) and real property gains tax (RPGT) waiver are likely to spur the primary and secondary housing markets in the coming quarters,” Glomac noted.

The developer said it has put in place more aggressive marketing strategies, especially in the digital sphere and will push for a greater digital presence of the Glomac brand and develop it as one of the key marketing avenues going forward.  

Over the longer term, Glomac said it will continue to pace its new launches strategically, leveraging on a strong development portfolio with a potential estimated gross development value (GDV) of RM8 billion that will sustain the group for the coming years.

As at Apr 30, 2020, Glomac’s cash position increased to RM176.6 million while net gearing decreased to 0.28 times against shareholders’ funds of RM1.1 billion.

Net assets per share attributable to ordinary equity holders of the company amounted to RM1.42.

The board has proposed a final single tier dividend of one sen for FY20, subject to shareholders’ approval at the forthcoming AGM.