Tadmax narrows losses in Q1

PETALING JAYA: Tadmax Resources Bhd narrowed its net losses to RM2.28million in the first quarter ended March 31 against the RM 3.62 million reported a year ago – on the back of higher revenue as well as due to the capitalisation of expenditure incurred for the development of its maiden power plant.
Revenue for the period rose by 163.8% to RM32.98 million from RM12.5 million on the back of contribution of the property segment which saw a higher percentage of completion.
Going forward, the group expects its property development and construction segment to continue to be the mainstay of its core operations in line with its strategy to ensure the long-term visibility of revenue, while the energy business segment, is not expected to contribute to the near-term profitability as it is expected to take approximately four years to commence commercial operation.
The company is presently undertaking a proposed private placement exercise which will provide the group with additional cash flow for working capital requirements.
Tadmax expects the group to generate profits for the financial year ending Dec 31, fueled by much higher revenue from its Mizumi Residences project which it expects to recognise in line with an expected higher percentage of completion and percentage of units sold.
The stock fell 2.56% to close at 19 sen with some 529,900 shares done.