Damansara Realty back in the black

  • Business
  • Wednesday, 14 Feb 2018

All smiles: (from left) Brian, Zain and chief operating officer Yahaya Hassan at the company’s press briefing in Kuala Lumpur.

KUALA LUMPUR: Damansara Realty Bhd which posted a turnaround in its bottom line in the financial year 2017 (FY17) ended Dec 31 is targeting further growth in its revenue and net profit of 10%-15% conservatively in FY18.

“When we have a growth in revenue, we also expect the same range as well for profits,” its chief financial officer Zain Azrai Zainuddin said at its press briefing yesterday.

“This (turnaround to profits again) is a sustainable thing and we will build upon it this year and it is not enough for us.

“The company was listed back in 1973, it has had it glory days with full of ups and downs but we would like to bring back those glory days once again,” CEO Brian Iskandar Zulkarim told a press briefing here yesterday.

The property company had returned to the black in FY17 after three consecutive years of losses netting a net profit of RM17.8mil last year from a net loss of RM27.88mil in FY16.

“Our transformation plans have been effective and we are 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,” Brian said.

“We did not do this by selling assets. There were a lot of things that we see that could be improved, among one of those were governance.

“If it is done without looking at lean management at the same time, will cause more processes and will not make you efficient but this is also important because we need to safeguard integrity,” he added.

He said the company had to ensure lean management as well in conjunction with improving processes so that whatever the team did is efficient to grow the company.

“We also had changed performance management from chasing after revenue to chasing after earnings before interest, taxes, depreciation and amortisation,” Brian said.

Brian meanwhile maintained that Damansara Realty is still a property company but will tap growth from all segments but it will be more focused on the integrated facilities management business (IFM) segment of which it is already operating in now.

“We are still a property company but while we are pushing all areas for growth, we would like to be cautious on the property segment for the time being,” Brian said.

“We would see growth being predominantly from the IFM segment this year due to the cautious situation in the property market now.

“Property is cyclical while IFM is recurring income and we would like to balance this. It’s not one over the other but about the balance,” he added.

Brian said the company was eyeing two “very big contracts” this year within the IFM space.

“I can’t really specify an exact figure for now. It can range between RM100,000 and RM1mil per month or from RM1mil to RM120mil a year,” he said.

Zain said that with the company’s stronger balance sheets at present, that it was confident of going to the market for future financing purposes.

“We are confident that the banks will show confidence in us. As you see our gearing is very low and we want to have efficiency in our funding,” Zain said.

Its presentation slides explain-ed that with the low gearing ratio of 0.13 times, the company is able to raise funds to take on bigger and profitable projects in the future.

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