Damansara Realty returns to the black in FY17

In a filing with Bursa Malaysia, Country View said that the acquisition

KUALA LUMPUR: Damansara Realty Bhd returned to profitability in the financial year ended Dec 31, 2017 as it reported earnings of RM17.02mil after the implementation of its turnaround programme in November 2016 

The property company said on Tuesday, this was a contrast from the losses of RM27.12mil in FY16. Its revenue rose 36.1% to RM249.48mil from RM183.20mil a year ago.

Its group CEO Brian Iskandar Zulkarim said DRealty's transformation plans have been effective and it was seeing results faster than expected. 

“We have broken a three year streak of losses from the second quarter onwards in 2017 by securing more higher-value contracts and increasing revenue through synergised offerings from our subsidiaries.” 

“We believe we are in a stronger position for growth and on track for sustained profitability,” said Brian. 

It recorded strong revenue stream from integrated facilities management (IFM), property and land development, as well as project management consultancy (PMC). 

The IFM segment contributed 30.8% to the DRealty's overall revenue RM221.6 million in FY2017 versus RM169.3mil in FY2016. 

He said the increase was due to the ongoing contracts from Petronas, Malaysia Airports, Menara TM, Dataran Maybank and Etiqa buildings, MRT stations, Singapore Sports Centre, and AeroDarat Services. 

“With increasing demand from clients to deal with a single service provider that can offer a one stop solution for all maintenance and operational requirements, our strengthened IFM segment is now able to provide a wider scope of related services to meet our clients’ needs. 

“This puts us on a good standing to benefit from increased recurring income from a diverse suite of bundled offerings through our various subsidiaries,” Brian said. 

DRealty's PMC segment recorded a 12% increase in revenue to RM11.2mil from RM10mil a year ago.

“The company aims to broaden its offerings to more than just hospital planning and consultancy in order to diversify income streams from other project management consultancy and construction management activities,” he said.

As for its property and land development segment, revenue almost tripled to RM20.07mil from RM7mil last year, mainly due to unit sales from its Damansara Hills 1 development in Kuantan, Pahang and Aliff Square 2 in Tampoi, Johor. 

“The group’s transformation success is also reflected in its net current assets of RM1.53 million from RM154.65 million of net current liabilities, following the completion of a large portion of its settlement agreement for 53-acre land in Johor,” said Brian.

In the fourth quarter ended Dec 31, 2017, DRealty reported earnings of RM14.73mil compared with net losses of RM12.58mil a year ago. 

Its revenue rose 34.2% to RM67.24mil from RM50.09mil. Earnings per share were 4.75 sen comapred with net loss per share of 2.12 sen.


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