KUALA LUMPUR (Dec 13): Eco World International Bhd reported a fourth quarter net profit of RM70.08 million from a net loss of RM32.56 million a year earlier due to revenue and profit recognised by joint venture (JV) property projects in the UK.

In a filing to Bursa Malaysia today, Eco World International said revenue surged to RM4.89 million in the fourth quarter ended Oct 31, 2018 (4QFY18) from RM27,000.

"The revenue arose from fees for marketing services rendered by a subsidiary to the group's JV in respect of property sales of its projects in the UK. During the current quarter, the group recorded a profit before tax (PBT) of RM69.93 million for 4QFY18 compared to the loss before tax of RM35.70 million reported for 4QFY17.

"The PBT reported in 4QFY18 was mainly due to recognition of revenue and profit by its JV projects in the UK following completion and commencement of handover of units sold to customers. This enabled the group to recognise RM94.36 million as its attributable share of profit from its JVs as opposed to the share of profit of RM1.39 million taken up in the previous year," Eco World International said.

For the full year (FY18), Eco World International reported a net profit of RM35.24 million compared to a net loss of RM87.63 million a year earlier. Revenue surged to RM4.9 million from RM488,000, according to the company.

Eco World International said it secured in FY18 RM3.26 billion of new property sales, which is higher than the RM3 billion sales target set for the year. For FY17, the developer said it achieved new property sales of RM2 billion.

According to Eco World International, the strong sales achieved in FY18 had raised the group's unbilled sales to RM6.62 billion as at Oct 31, 2018 from RM5.85 billion a year earlier. The group said these unbilled sales are expected to be converted into revenue over the next three financial years.

Moving forward into FY19, Eco World International said market conditions are expected to remain soft at best, until Brexit concerns are resolved.

"Accordingly, management will concentrate on expanding the BtR (built-to-rent) footprint in London as a key growth driver for the group in the medium term. This will be supported by private residential developments that cater mainly to owner-occupiers in the mid-mainstream UK market as well as sale of the remaining units from its original three projects in the UK and two projects in Australia to local and international individual buyers.

"With clear earnings visibility secured for FY2019-2021 through the record high unbilled sales as at Oct 31, 2018, the board has therefore approved a sales target of RM6 billion to be achieved by the group over the next two financial years i.e. from FY2019- FY2020," Eco World International said.