KUALA LUMPUR: Gadang Holdings Bhd
's earnings crossed the RM100mil level in the financial year ended May 31, 2017 due to improved profit margins from construction projects and higher contributions from its property business.
The company announced on Wednesday that its earnings rose 5.9% to RM100.37mil from RM94.76mil in FY16. However, its revenue fell 19.4% to RM542.80mil from RM673.53mil.
Despite the lower revenue, better margins from construction and property businesses nudged the pre-tax profit by 11.7% to RM140.92mil from RM126.07mil.
Elaborating on the construction division, it said revenue for FY17 fell 42.6% to RM275.91mil from RM480.61mil a year ago.
“This was mainly due to completion of some projects in the preceding year. However, profit before tax increased by 13% to RM80.83mil due to improved profit margins for various projects,” it said.
As for the property division, revenue increased from RM172.02mil to RM243.83mil. This saw profit before tax rising from RM52.93mil to RM63.84mil.
“This was mainly due to higher development progress for various on-going projects,” it said.
For the fourth quarter, its earnings dipped 3.5% to RM29.98mil from RM31.07mil. Its revenue fell 33.8% to RM163.78mil from RM247.49mil.
Earnings per share were lower at 4.63 sen compared with 5.52 sen. It announced a dividend payment of three sen compared with seven sen a year ago.
Its construction division recorded sharply lower revenue of RM89.94mil from RM180.02mil a year ago. But on a profit before tax basis, the division performed better at RM33.82mil from RM21.20mil a year ago.
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