SUBANG JAYA: Malaysian Resources Corp Bhd (MRCB) aims to achieve 50% growth in revenue and pre-tax profit next year, said group managing director Shahril Ridza Ridzuan.
“As per our headline key performance indicators, we are targeting 50% revenue and pre-tax profit growth this year. This target is intact for 2006 and we believe we can aim for similar growth next year,” he said after the company EGM yesterday.
Shahril said MRCB expected revenue to grow to RM800mil next year from RM500mil this year.
The company, he said, was optimistic of its prospects on the back of its foray to the Middle East as well as projects under the Ninth Malaysia Plan (9MP).
In September, MRCB via joint venture arm Al Fattan MRCB Construction Co (LLC) was awarded contracts worth about RM391mil to develop an office building, a six-star hotel and luxury residences in Dubai, United Arab Emirates (UAE).
“Once these projects mature, we will be looking to expand in the UAE,” he said, adding that MRCB would use Dubai as a springboard to tap further opportunities in the Middle East.
On the local front, the company is waiting for the request for proposal to be issued for the Penang monorail project.
“We try to avoid taking part in tenders unless we have a reasonable chance of clinching the deal. We try to make sure we have a success rate in excess of 30%,” Shahril said.
MRCB currently has an order book worth about RM1.8bil, of which 25% are overseas projects.
At the EGM yesterday, shareholders passed the proposed divestment of MRCB's 24.93% equity stake in UDA Holdings Bhd, held via wholly-owned unit Landas Utama Sdn Bhd.
Shahril said the deal was still conditional as it would require the approval of UDA Holdings shareholders at an EGM to be held next week.
“If approved, we will receive about RM264mil cash for our stake, which would be used to reduce borrowings and as working capital,'' he said.
For the nine months ended Sept 30, MRCB registered a pre-tax profit of RM21.9mil, up from RM3.8mil previously, while revenue jumped to RM370.8mil from RM176mil previously.
Meanwhile, in a statement late yesterday, MRCB said the Employees Provident Fund (EPF) had purchased Block 1A of its Plaza Sentral phase two for RM80mil.
The RM300mil Plaza Sentral phase two comprises four blocks with 174 office suites and a total gross floor area of 849,790 sq ft.
KL Sentral is currently 35% completed. The company said new developments worth around RM2bil were in progress.
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