Grand-Flo eyes higher revenue from property segment in 2015

KUALA LUMPUR: Tracking solutions provider and property developer Grand-Flo Bhd is aiming to raise the revenue contribution from its property development segment to 50% this year from 20% in 2014.

Group president and group managing director Derrick Tan said the company has two ongoing projects targeted for completion in 2017 -- Vortex Business Park and The Glades in Penang -- with a gross development value of RM220mil and RM63mil, respectively.

"We have seen a positive take-up rate of 70% for the first phase of Vortex, a commercial and industrial development," he told reporters after the company's annual general meeting here on Monday.

"We hope to have 50:50 ratio contribution from our tracking solutions and property segments," Tan said. 

For the first quarter ended March 31, 2015, Grand-Flo posted a higher revenue of RM27.22mil from RM14.201mil in the same quarter last year, while pre-tax profit rose to RM6.3mil from RM3.4mil previously.

At mid-day break, Grand-Flo's shares eased half-a-sen to 30 sen.

Tan said going forward, the company is looking for landbank opportunities in strategic growth areas such as the Klang Valley to maintain the property segment's growth momentum.

For the tracking solutions business, the company is adding new customers from different industries including food and beverage as well as logistics, Tan said. 

 At the AGM, the company received shareholders' approval for its final tax-exempt dividend of a sen per share in financial year 2014.- Bernama