GFM upbeat on outlook after strong Q1 results

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

KUALA LUMPUR: GFM Services Bhd's posted a strong set of first quarter results mainly due to the facilities management services and is upbeat on the outlook for remaining year with an order book of RM1.38bil at March 31, 2019.

It announced on Thursday its net profit jumped by 95.4% to RM5.53mil from RM2.83mil a year ago. Its revenue increased by 32.9% to RM42.44mil from RM31.92mil. Earnings per share were 1.17 sen compared with 0.66 sen.

In the notes to the accounts, GFM said the major contributor to the group’s revenue was from the facilities management services
operations segment. 

“Our group recorded revenue from this segment of RM30.48mil which accounted for 72% of the total revenue recorded for the current financial period under review,” it said.

GFM said the group had completed the acquisition of KPMD on Nov 27,  2018 and it is looking forward for the full consolidation of KPMD’s earnings from 2019 onwards.

The consolidation would provide the group with stable consistent income until 2035 and significantly improve the group’s long-term prospects, it said.

“It expects to continue the growth momentum with the focus on expanding the portfolio and bidding for more contracts. 

“Internally, the group will keep on exploring more innovative technology-based solutions to address the evolving needs of clients and focus on efficient business process with the on-going vendor rationalisation programme,” it said.

GFM said the group’s outstanding order book stood at RM1.38bil as at March 31 and it expected these contracts to continuing to contribute positively to its prospects.