Current quarter ("1Q 2018") against preceding year corresponding quarter ("1Q 2017")
For the 1Q 2018, the Group registered revenue of RM230.64 million and profit before tax of RM55.884 million as compared to revenue of RM203.546 million and profit before tax of RM54.181 million reported in the 1Q 2017. The increase in Group revenue was mainly due to higher revenue from the construction and property development segment.
The performance of the respective operating business segments for the 1Q 2018 under review as compared to the 1Q 2017 is analysed as follow:
The construction sector reported a higher revenue of RM156.47 million for the 1Q 2018 as compared to RM155.311 million in 1Q 2017. Despite an increase in the revenue, the profit before interest and tax is lower than the 1Q 2017 as more income from the initial commencement of preliminary and enabling work for SPE, which has a better profit margin was recognised in 1Q 2017 as compared to 1Q 2018.
The property development segment reported a higher revenue of RM42.629 million as compared to RM18.429 million in the preceding year corresponding period. Higher sales recognition for property development project following additional progress work done has contributed to a higher revenue for the segment. Correspondingly, this sector recorded higher profit before interest and tax of RM18.047 million for the 1Q 2018 as compared to RM5.594 million in 1Q 2017.
The toll operations sector registered a higher revenue of RM31.294 million in 1Q 2018 as compared to RM29.524 million in 1Q 2017. An increase of 6% in the revenue for 1Q 2018 was mainly due to a higher traffic volume in the month of July 2017 during the Hari Raya Aidilfitri celebration month.
Revenue for the current quarter decreased from RM0.282 million to RM0.247 million due to reduction from rental income as some of the tenancies were not renewed. Correspondingly, this has reduced the profit before tax for the quarter.
Current year to date ("YTD 2018") against preceding year corresponding period ("YTD 2017")
For the YTD 2018, the financial review for the Group compared the YTD 2017 are similar to the financial review of the current quarter ("1Q 2018") against preceding year corresponding quarter ("1Q 2017"). Please refer to the above for the analysis of the performance of the respective operating business segments.
The Board expects the ongoing construction of SPE, River of Life and related projects, the opening of the DUKE Phase-2’s toll revenue and the recognition of unbilled sales from property development activities to contribute positively to the Group's turnover and profitability in the current financial year.
Barring any unforeseen circumstances, the Board is confident that the Group’s performance would remain satisfactory for the financial year ending 30 June 2018.