Benalec posts RM12mil net profit from RM4.65mil loss

KUALA LUMPUR: Benalec Holdings Bhd posted a net profit of RM12.02mil for its first quarter ended Sept 30, 2014 against a RM4.65mil loss during the same period last year.

In a filing to Bursa Malaysia on Tuesday, the group said its revenue more than tripled to RM47.93mil from RM14.403mil a year ago.

Earnings per share for the period stood at 1.5 sen from loss per share of 0.6 sen a year ago.

The group said the increase in revenue was mainly due to recognition of land sales in the current quarter.

It added that significant land reclamation works have been undertaken by the subsidiaries of the group for a project located Kawasan Kota Laksamana, Bandar Melaka (Project DMDI). 

"The development costs of approximately RM57.32mil incurred as at to date in relation to the Project DMDI have been capitalised as land reclamation work in progress," it said.

The group added that its unit Jayamas Cekap Sdn Bhd, is a concessionaire for the project DMDI.

Hence, any unrealised profit arising from the land reclamation works in relation to Project DMDI will be eliminated in full, it said.

Benalec has as of LPD, managed to sell its entitled nett saleable area in Project DMDI, measuring 158.06 acres for RM286.6mil to two end buyers, which are Faithview Supreme Development Sdn Bhd and Ultra Harmony Development Sdn Bhd.

Benalec noted that revenue and profit from the Project DMDI will only be recognised upon 
the completion of the abovementioned two land sales.