KUALA LUMPUR (Sept 25): WZ Satu Bhd’s net profit for the quarter ended July 31, 2014 leaped to RM8.04 million from RM100,000 in the previous corresponding quarter due to maiden contributions from its newly acquired construction subsidiary WZS KenKeong Sdn Bhd (formerly KenKeong Sdn Bhd) and its mining associate, SE Satu Sdn Bhd.

Revenue for the quarter also surged threefold to RM62.7 million from RM20.9 million in the same period; profit before tax was also significantly higher at RM9.7 million compared to RM0.1 million, its filing to Bursa Malaysia today reads.

On the after tax basis, the group earned RM8.0 million, WZS KenKeong Sdn Bhd and SE Satu contributed RM5.6 million and RM2.8 million, respectively. Meanwhile, its steel business suffered losses of RM0.4 million.

On May 8 this year, the group completed the acquisition WZS KenKeong Sdn Bhd (formerly known as KenKeong Sdn Bhd), making it a wholly-owned subsidiary of the group.

For the 15-month period ended July 31, the group recorded a net profit of RM8.7 million on the back of RM152.4 million in revenue; the group changed its financial year ending period to August 31, 2014 instead of April 30, 2014 earlier this year.

"The surge in both revenue and profit after tax were due to contribution of 15-month period, as compared with 12-month period and contributions from both the construction subsidiary and mining associate," it said.

Looking forward, WZ Satu said it expects a meaningful contribution to the group's financial performance once the acquisition of its oil & gas asset is complete in the first quarter next year.

The group is also looking at various options in regards to the legacy steel business, and is looking at expanding its civil engineering, construction and mining businesses.