Vertice’s 4Q net loss widens to RM28.9m

by S BIRRUNTHA / graphic by TMR

VERTICE Bhd widened its net loss to RM28.94 million for the fourth quarter ended March 31, 2022 (4Q22) from an RM10.55 million net loss a year ago, mainly due to the downward adjustment in revenue recognised for the Light Rail Transit Line 3 (LRT3) project in the current quarter of RM4.2 million.

The construction engineering group said the lower earnings was also due to current quarter impairments totalling RM24.9 million which includes impairment loss of RM8.4 million from the disposal of investment in Kumpulan Voir Sdn Bhd.

Vertice reported revenue of RM252,000 for the quarter compared to RM12.29 million in 4Q21, its filing to Bursa Malaysia showed.

The group said its revenue in the current period was lower as most of the older projects had their contracts ended prematurely on grounds of feasibility to continue after prolonged periods of slowdown in work progress.    

It also noted that its construction business recorded a turnover of RM0.3 million in the current quarter which was lower than the preceding year’s corresponding quarter of RM12.3 million.  

Meanwhile, Vertice registered a loss per share of 10.36 sen for the period against 4.98 sen previously.

No dividend has been declared during the current quarter under review.

For the full financial year ended March 31, 2022 (FY22), its net loss increased to RM35.84 million from RM19.89 million for the previous year.   

Cumulative revenue declined to RM8.4 million compared to RM44.66 million in FY21.

On prospects, Vertice said it remains cautiously optimistic about the group’s future performance with the expected gradual recovery in the overall economic climate while continuing to replenish and beef up its orderbook.

It added that the group’s outstanding orderbook stands at approximately RM104.64 million comprising both construction and property development projects, with the construction arm adding to its order book of approximately RM47.5 million during the current quarter.

Additionally, the group said its property development arm is now parked under its wholly owned subsidiary, Wande Development Sdn Bhd.  

During the current quarter, Wande completed its acquisition of a 55% stake in Greenview Pavilion Sdn Bhd whose principal activities are property development and property investment holdings.  

Vertice said it intends to grow this sector by targeting markets in Penang, the Klang Valley and East Malaysia.

“Greenview’s current maiden project is located in Penang with a gross development value of RM45.4 million.

“With the above set up, the group has now positioned itself into two main sectors, namely construction and property development to boost its future earnings,” the group noted.

Shares of Vertice closed half a sen or 4% higher at 13 sen yesterday, giving it a market capitalisation of RM39.76 million.