Widad unit secures RM89.8m project from Kedah govt

by SHAHEERA AZNAM SHAH / graphic by TMR

WIDAD Group Bhd has secured a contract from the Kedah state government for a proposed project of upgrading the Sungai Limau water treatment plant in Baling for RM89.8 million.

The group, in a filing to Bursa Malaysia yesterday, said its wholly-owned subsidiary, Widad Builders Sdn Bhd (WBSB), accepted the tender. WBSB is mainly involved in construction and integrated facilities management activities.

Widad said the contract period is expected to be effective for 130 weeks and that the project will commence from May 2, 2021, to October 28, 2023.

It said the project will be fully funded through internally generated funds and external borrowings, while it would not have any impact on the issued share capital and substantial shareholders of the group.

“There are no foreseeable significant risks other than operational risks associated with the project during the period.

“The project, being part of the ordinary course of business of Widad Group, is not subject to the approval of shareholders of Widad or any relevant authorities,” the company said.

Widad expects the project to contribute positively to its earnings and the group’s net assets and its subsidiaries over the duration of the project.

The group declared a narrowed net quarterly loss of RM488,000 in its fourth quarter ended Dec 31, 2020, against RM6.12 million in the previous year. It attributed the smaller loss to tax gains.

Its revenue, however, plunged 65.22% year-on-year to RM23.94 million from RM68.84 million made previously, attributed to the lower recognition of revenue for the existing project under its construction segment, offset by the contribution from its integrated facilities management.

Widad’s share price remained unchanged yesterday at 50 sen with a market capitalisation of RM1.37 billion.

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