Glomac Q4 net profit fell 26% to RM21.9 million

PETALING JAYA: Property developer Glomac Bhd’s fourth quarter net profit fell 26% to RM21.9 million from RM29.6 million a year ago due mainly to lower fair value recognition for investment properties of RM10.0 million compared with RM30.2 million previously, and provisions.
It told the stock exchange yesterday that its revenue for the quarter ended April 30, 2016 rose 1.3% to RM171.7 million from RM169.5 million previously. The stronger revenue was driven by steady construction progress from its ongoing development projects such as Puchong Lakeside Residences, Saujana Rawang, Saujana KLIA, Glomac Centro and Reflection Residences.
For the full 12-month period, its net profit fell 7.8% to RM80.2 million from RM87 million previously. Group revenue was 26.5% higher at RM598.9 million from RM473.3 million a year ago.
Glomac proposed a single-tier final dividend of 2 sen per share, bringing its total dividend for the year to 4 sen per share.
Glomac delivered RM450 million new sales in FY16 against a backdrop of softer market conditions and the decision to hold back launches in the year.
In the current FY17 Glomac aims to launch RM1.22 billion worth of new projects with a healthy mix of landed and high-rise residential projects.
Glomac said its unbilled sales stood at RM652 million as at end-April 2016 which it expects to improve with more robust launches in FY17.
Going forward, Glomac said its prospects remain favourable, underpinned by a strong financial position and a robust pipeline of development projects. It said its development portfolio has a potential GDV of RM7 billion, dominated substantially by landed residential and township development projects.
“Glomac is confident to deliver sustainable growth, underscored by its solid development platform that is focused on the affordable landed residential segment,” it added.