Financials


Condensed Consolidated Statement Of Comprehensive Income
For the financial year ended 30 June 2018

Comprehensive Income

Condensed Consolidated Statement Of Financial Position
As At 30 June 2018

Financial Position

Financial review for current quarter

Financial Position

Current quarter ("4Q 2018") against preceding year corresponding quarter ("4Q 2017")

For the 4Q 2018, the Group registered revenue of RM302.681 million and profit before tax of RM1.453 million as compared to revenue of RM318.453 million and profit before tax of RM50.835 million reported in the 4Q 2017.

The performance of the respective operating business segments for the 4Q 2018 under review as compared to the 4Q 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM182.351 million for the 4Q 2018 as compared to RM259.272 million in 4Q 2017. The decrease in revenue and gross profit in the 4Q 2018 were mainly due to the completion of Duke Phase 2 and the River Of Life Precinct 7 beautification work at Masjid Jamek resulting in a lower progress construction workdone recognized for the current quarter.

Property development

The property development segment reported a higher revenue of RM80.283 million as compared to RM28.740 million in the preceding year corresponding quarter. Higher sales recognition for property development following increase in progress work done has contributed to a higher revenue for the segment. Despite an increase in the revenue, the gross profit for this quarter is lower than the preceding year corresponding quarter because of the additional costs incurred to expedite the completion of the project.

Toll operations

The toll operations sector registered a higher revenue of RM39.761 million in 4Q 2018 as compared to RM29.854 million in 4Q 2017. There is an increase of 33.18% in the toll revenue due to the increase in traffic volume and the additional contribution from the opening of the Duke Phase 2 on 23 October 2017. As a result of the increased revenue, the sector reported a higher gross profit of RM29.417 million as against RM25.897 million in 4Q 2017.

Investment holding

Revenue for the current quarter decreased from RM0.587 million to RM0.286 million due to reduction in rental income as more office space is required for internal usage. Correspondingly, this has reduced the sector’s gross profit and profit before tax for the quarter.

Financial Position

Current year to date ("YTD 2018") against preceding year corresponding period ("YTD 2017")

For the YTD 2018, the Group registered a revenue of RM1,051.713 million and profit before tax of RM152.925 million as compared to the revenue of RM1,088.703 million and profit before tax of RM176.705 million reported in YTD 2017. The slight decrease in the Group revenue was due to the lesser work done in construction sector, mitigated by increase revenue from the property development and toll operation.

Other than the above, the performance of the respective operating business segments for the YTD 2018 as compared to the YTD 2017 is analysed as follow:

Construction operations

The construction sector reported a lower revenue of RM628.901 million for the YTD 2018 as compared to RM858.384 million in YTD 2017. The decrease in the revenue for the YTD 2018 was attributed to lower construction workdone following the completion of Duke Phase 2 project in the 2nd quarter of YTD 2018. As a result of the decreased revenue, the sector reported a lower gross profit of RM169.285 million in YTD 2018 as against RM245.758 million in YTD 2017.

Property development

The property development segment reported a higher revenue of RM274.538 million as compared to RM103.403 million in the preceding year. Higher sales recognition for EkoCheras Project following additional progress work done has contributed to a higher revenue for the segment. Correspondingly, this sector recorded higher gross profit of RM92.117 million for the YTD 2018 as compared to RM43.761 million in YTD 2017.

Toll operations

The toll operations sector registered a higher revenue of RM147.414 million in YTD 2018 as compared to RM125.921 million in YTD 2017. The revenue for YTD 2017 includes a one-off toll compensation amounting to RM7.986 million. Had the compensation amount been excluded, the YTD 2018 toll revenue would have increased by RM29.479 million, which is an increase of 25.0%. Besides the increase in traffic volume, the opening of the Duke Phase 2 on 23 October 2017 has also contributed to the increase in the revenue recognized in YTD 2018.

Investment holding

Revenue for the YTD 2018 decreased from RM0.995 million to RM0.860 million due to reduction from rental income as some of the tenancies were not renewed. Correspondingly, this has reduced the gross profit from RM0.380 million to RM0.151 million for the current YTD.

Prospects

The Board expects the ongoing construction of SPE, River of Life and related projects, the toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the Group's turnover and profitability in the coming financial year.

Barring any unforeseen circumstances, the Board is of the view that the Group’s performance would remain satisfactory for the coming financial year.