Glomac foresees a challenging year if Covid-19 and MCO persist

by ASILA JALIL / pic by TMR FILE

GLOMAC Bhd foresees a challenging financial year ending April 30, 2021 (FY21), due to Covid-19 and movement restrictions that limit its operations.

The group, however, has taken steps to ensure the smooth running of its operations and lessen the impacts caused by the pandemic.

“The directors are of the opinion that the group’s performance for FY21, is expected to remain challenging as the industry is adversely impacted by Covid-19 and various phases of Movement Control Order (MCO).

“The group has taken certain steps to circumvent and mitigate the challenges. The group is also backed by a sustainable level of unbilled sales of RM649 million and pipeline of new launches for the financial year,” it said in its Bursa filing yesterday.

The developer’s earnings increased by 62.9% year-on-year (YoY) for its second quarter ended Oct 31, 2020, to RM9.12 million or 1.19 sen per share from RM5.59 million in the same period last year.

Revenue rose 70.1% YoY to RM104.61 million in the quarter driven by its property development segment.

The group said its turnover is expected to be strongly backed by strong unbilled sales, unless the Covid-19 and Conditional MCO (CMCO) persist.

Its net profit for the six-month period increased by 31.3% YoY to RM11.88 million from RM9.05 million last year.

The group’s revenue for the two quarters rose by 33.6% to RM151.49 million against RM113.38 million in the same period last year.

Glomac said revenue from its property development segment for the period jumped 81% compared to the previous corresponding period, mainly contributed by further work progress from new and ongoing phases such as Saujana Perdana located at Bandar Saujana Utama in Sungai Buloh; [email protected] Kelana Jaya and 121 Residences in Petaling Jaya; and Saujana Rawang in Rawang.

“Revenue from property investment decreased by 23% compared to the previous corresponding period. Revenue will be challenging as the industry is adversely impacted by Covid-19 and various phases of MCO moving forward,” it added.

Revenue from the segment mainly consisted of car park rental and mall rental incomes.