As the value of the company is tied to the performance of the company, it is in the interest of the warring shareholders to argue and fight outside the company.
KUALA LUMPUR: Eco World International Bhd
turned profitable in FY2018 ended Oct 31 with a net profit of RM35.24mil as compared to a net loss of RM87.63mil in the previous financial year due to contributions from its UK joint venture's projects in the Built-to-Rent (BtR) subsector.
For the final quarter, net profit jumped to RM70.08mil as compared to a net loss of RM32.56mil in the same quarter last year as it recognised revenue and profit from its UK joint venture.
"EcoWorld London’s strong capabilities in the Built-to-Rent subsector enabled EcoWorld International to overcome Brexit uncertainties to record total sales of RM3.3bil for FY2018.
"This is well above the target set for the financial year of RM3 billion and over 60% higher than the RM2bil achieved in FY2017," it said in a statement.
The group said in a stock exchange filing that the completion and handover of units under its JV projects in the UK boosted the current quarter's pre-tax profit to RM69.93mil.
"This enabled the Group to recognise RM94.36mil as its attributable share of profit from its joint ventures as opposed to the share of profit of RM1.39mil taken up in the previous year," it said.
The group's revenue for the quarter under review jumped to RM4.89mil from just RM27,000 in the 2017 quarter, arising from marketing service fee contributions from a subsidiary in respect of property sales of its projects in the UK.
According to the group, gross profit recorded by its subsidiaries in the quarter under review was RM3.85mil, versus a gross loss of RM1.56mil in 4Q 2017.
For the year ahead, EcoWorld International’s share of unbilled sales to be carried forward reached a record high of RM6.6bil, it said.
"For the upcoming financial year, market conditions in the UK are expected to remain soft at best, at least until Brexit concerns are resolved.
"Accordingly, EcoWorld International will concentrate on expanding its BtR footprint in London as a key growth driver for the Group in the medium term," said Datuk Teow Leong Seng, president and CEO of EcoWorld International.
He added that EcoWorld London has existing sites with the potential to deliver over 3,000 BtR units which the group intends to realise over the next two to three years.
"This will be supported by new launches of private residential developments that cater mainly to owner-occupiers in the midmainstream UK market.
"The Group will also work on selling the remaining units from its original 3 projects in the UK and 2 projects in Australia to local and international individual buyers."
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
