KUALA LUMPUR (July 28): Glomac Bhd posted a net profit of RM4.77 million for the fourth quarter ended April 30, 2021 (4QFY21), versus a net loss of RM8.59 million a year earlier, amid a pick-up in construction activities after the movement control order (MCO).
The property developer proposed a final dividend of one sen per share for FY21.
Revenue for the quarter jumped 98% to 115.43 million, from RM58.41 million a year earlier, the group’s bourse filing showed.
In a statement, Glomac said the increased construction activities led to higher progress billings from its ongoing projects such as Saujana Perdana at Bandar Saujana Utama, Plaza@Kelana Jaya, Saujana Rawang and 121 Residences.
It also saw lower interest expense during the quarter, and was also helped by its ongoing cost rationalisation measures and a lower fair value loss on investment properties.
For the cumulative full-year, Glomac’s net profit surged 125% to RM28.31 million from RM12.6 million in the previous year, while revenue increased 49% to RM366.31 million from RM245.81 million.
“The group’s financial position remained robust, sporting a cash position of RM218.2 million and a current ratio of 1.77 times. Net gearing stood at a healthy 0.25 times against shareholders’ funds of RM1.2 billion,” said Glomac.
During the year, the group locked in RM231 million in new sales, despite Covid-19 and Glomac’s decision to hold back on new launches.
It said new sales were driven by strong take-up rates from new phases launched in FY21, noting that the double-storey terrace houses launched at Saujana Perdana were well received by the market.
The group had to adapt to the environment and initiated aggressive digital marketing campaigns to complement its conventional sales strategies.
Glomac had also completed the construction and handing over of keys to the buyers of Tresna Teruntum, Saujana Perdana in April.
Going forward, Glomac said the property market is likely to remain challenging amid the pandemic, although the mass vaccinations, low interest rate environment and the extension of the Home Ownership Campaign will provide a boost to the property segment in the medium term.
“On the company front, Glomac’s earnings visibility is expected to be robust, backed by unbilled sales of RM578 million.
“Over the longer term, Glomac will continue to pace its new launches strategically, leveraging on a strong development portfolio with a potential estimated GDV of RM8 billion that will sustain the group for the coming years,” it said.
Glomac’s share price rose one sen or 2.9% to close at 35 sen today, giving it a market capitalisation of RM280.03 million.