George Kent’s net profit drops 21%

by SHAHEERA AZNAM SHAH / pic by MUHD AMIN NAHARUL

GEORGE Kent (M) Bhd stated lower contribution from its engineering sector saw its net profit drop 20.92% year-on-year (YoY) in its second quarter ended on July 31, 2020 (2Q21), to RM8.74 million.

Revenue for the quarter declined by 28.2% YoY to RM70.16 million.

The group said its construction activities had ceased during the Covid-19-induced Movement Control Order, but were restarted in mid-June 2020 after the completion of mandatory foreign worker health screenings.

“Our Hospital Endokrin Putrajaya team recommenced work on June 9, while our Hospital Tanjung Karang team resumed construction on June 11. As we do not have foreign workers at our railway project sites, work has resumed, albeit at a slower pace,” it said in a filing to Bursa Malaysia.

Its engineering revenue fell by 44% to RM38.39 million for 2Q21, Meanwhile, its metering business posted RM31.77 million in revenue, 10% higher compared to RM28.8 million last year.

The segment profit was RM6.91 million or 60% higher against RM4.33 million last year attributable to the higher sales and gross profit margin in the current quarter.

For the first six months of 2020, George Kent’s net profit almost halved by 49.24% to RM12.47 million from RM24.56 million, while its revenue declined by 39.35% to RM109.47 million from RM180.5 million reported last year.

The group recorded an interim single-tier dividend of one sen for its financial year 2021 (FY21) for 527.26 million shares amounted to approximately RM5.27 million.

It said the dividend would be paid on Oct 22, 2020.

Its chairman Tan Sri Tan Kay Hock said the group will continue prioritising costs as one of its major objectives in executing its operating and long-term plans.

“We have come up with strategies to become a one-stop purveyor of water meters as we are actively growing our product portfolio through partnerships with other manufacturers.

“The expanded range will accelerate our penetration into more markets around the world,” he said in a separate statement.

Tan added that George Kent’s long-term licence agreement with Honeywell International Inc enhances its control over component supply and production costs.

“It also gives us the right to sell water meters to 15 new territories in Asia. Our homegrown smart metering technology is undergoing real-world tests through POCs and pilot projects with state water authorities,” he said.