PETALING JAYA: Bintai Kinden Corporation Berhad (BKCB), a mechanical and electrical (M&E) engineering services specialist, medical device manufacturer and facilities operator, today announced that the company recorded a revenue of RM7.65 million for the fourth quarter ended March 31, 2024 (4Q FY2024), a decrease of 65.7% compared with RM22.30 million in the corresponding period of the previous financial year (4Q FY2023).
The decline in revenue is primarily due to the completion of several M&E projects in the previous quarter and a lack of new large-scale projects in the current quarter.
Despite the revenue decline, the company reported a profit before tax (PBT) of RM10.73 million for 4Q FY2024, a significant improvement compared with a loss before tax (LBT) of RM114.40 million in 4Q FY2023. This turnaround is attributed to lower operating costs achieved through downsizing and cost-cutting measures, as well as gains from the reversal of impairment loss on contract assets and recognition of Redeemable Convertible Preference Shares (RCPS) acquired at nominal value.
For the full financial year ended March 31, 2024 (FY2024), Bintai Kinden recorded a revenue of RM36.81 million, down 68.3% from RM116.10 million in the previous financial year (FY2023). The decrease in revenue is mainly due to the termination of ten legacy Tenaga Nasional Berhad (TNB) contracts and the absence of new major projects. However, the company posted a significantly encouraging PBT of RM5.05 million for FY2024 compared with a LBT of RM116.62 million in FY2023, driven by efficient cost management and strategic financial moves, including the recognition of fair value gains on contingent considerations and RCPS.
In January 2024, Bintai Kinden secured a RM58.6 million debt settlement plan from Kolej Teknologi Islam Melaka Bhd (KTIMB) as well as received shareholders' approval for a private placement exercise. The interim settlement plan with KTIMB includes an immediate disbursement of RM1.5 million by Jan 30, 2024, and six RM250,000 monthly instalments. Additionally, the Company was granted shareholder approval and raised RM16.6 million through a private placement aimed at reducing bank borrowings and for working capital purposes. These strategic advancements are critical steps towards financial resiliency and operational vitality.
BKCB managing director cum CEO Datuk Tay Chor Han said, “We are pleased to report a second consecutive profitable quarter. This positive outcome is primarily due to the successful completion of several M&E projects and efficient cost management measures. While the overall revenue has decreased, the Company has managed to achieve significant cost savings and operational efficiencies, while phasing out legacy projects.”
Looking ahead, he added they anticipate improved revenue from their new projects.
In the month of May itself, he said they have been awarded two M&E projects from Malaysia Airports Holdings Berhad and Taghill Projects Sdn Bhd respectively. There were also several M&E tenders which they had participated and are still awaiting the outcome. Concurrently, they are also actively pursuing opportunities to diversify their business by tendering for civil and structural (C&S) jobs and are expecting some job awards in the near future.
