Paramount posts flattish Q1 net profit of RM6.96m

The 20-year contract secured by its unit Metro Parking Management Philippines Inc would also include the construction of an additional 208-bays of steel deck parking structure in MBP - a bustling business hub in the affluent suburb near Alabang Town Centre, one of Metro Manila

KUALA LUMPUR: Paramount Corp Bhd's net profit in the first quarter ended March 31, 2018, was little changed at RM6.96mil versus RM6.98mil in the previous corresponding quarter. 

Group revenue rose 13% to RM162.25mil due to higher contribution from the education division, and profit before tax was led marginally higher by 3% to RM18mil.

"Revenue for the education division was significantly higher at RM70.8 million (1Q2017: RM40.8 million) mainly due to consolidation of R.E.A.L. Education Group of RM27 million from 11 April 2017 coupled with the higher student enrolment at KDU University College (Glenmarie and Penang)," it said in a stock exchange filing.

Profit before tax for the division was higher at RM12.7mil versus RM6.9mil in 1Q17.

However, the improvement in contribution from the education division was offset by lower progressive billings from the property division.

Revenue for the property division decreased 11% to RM91.4mil due to the lower level of construction activities achieved coupled with the completion of certain phases within its developments. 

Profit before tax for the division decreased in tandem by 34% to RM8.7mil.

Moving forward, Paramount said its unbilled sales of RM736mil as at March 31 is expected to contribute positively to its immediate future financial performance.

According to the group, it had an undeveloped landbank of 731.4 acres as at March 31.

Among its plans in 2018, the group is targeting to launch a mixed-use development project in the vicinity of Klang's main busines and commercial area where it will construct a new Sri KDUInternational school.

With regards to the education segment, Paramount believes there is untapped growth potential in the pre-school and enrichment centre segments. 

The group said it has opened three new pre-school centres in 1Q18 and will leverage on synergies for student retention with kindergarten student graduating to its other education centres.