Encorp posts net losses of RM10.6m in Q2

KUALA LUMPUR: Encorp Bhd posted net losses of RM10.60mil in the second quarter ended June 30, 2015 from earnings of RM1.50mil a year ago.

The property and construction company said on Thursday its revenue fell 50.3% to RM59.18mil from RM119.14mil a year ago. Its loss per share was 3.81 sen compared with earnings per share of 0.65 sen.

It said the weaker financial performance was due to lower sales achieved by the property division because of the softer property market and cost written off and recognition of foreseable losses of terminated construction projects.

Encorp said the property development recorded lower revenue of RM28.4mil in Q2FY15 compared with RM62.7mil a year ago. Profit before tax fell to RM8.9mil from RM16.8mil a year ago.

“This was because of lower sales achieved and completion of parcels of Cahaya Alam project in FY2014,” it said.

It said revenue from external construction contracts fell  from RM29.4mil a year ago to RM3.6mil in Q2FY15. The division recorded a loss before tax of RM10.2mil in Q2FY15 from loss before tax of RM300,000.

“The lower revenue and losses before tax is mainly due to the termination of a construction project and foreseable losses being recognised during the quarter,” it said.

Encorp said trade and other receivables increased sharply to RM237.27mil in Q2 FY15 from RM130.08mil a year ago.

Under its current liabilities, loans and borrowing in Q2FY15 increased to RM270.20mil from RM122.70mil a year ago.