SC Estate Builder continues to struggle after net losses in Q3

In its filings with Bursa Malaysia, Yong Tai said its wholly-owned subsidiary YTB Impression Sdn Bhd terminated the deal due to non-fulfilment of the condition precedent as stated in clause 3.1(c) of the joint development agreement. Yong Tai fell half a sen to close at 32.5 sen yesterday.

KUALA LUMPUR: Construction and project management group SC Estate Builder Bhd saw its net loss worsening in its third quarter ended Oct 31, 2018 to RM913,000 from RM855,000 a year ago.

It said on Friday the weaker performance was due to the fall in revenue by 22.9% to RM1.56mil from RM2.03mil a year ago. Loss per share was 0.1 sen.

However, for the nine months, its net losses narrowed to RM1.74mil from RM1.80mil in the previous corresponding period. Revenue fell 57% to RM5.97mil from RM13.87mil.

SC Estate Builder said business from the trading of aluminium and machines parts has been inactive despite an increase in the revenue generated from the construction and project management segment and the trading of building materials segment.  

“The higher losses for the current quarter and cumulative period nine month period (9M18) were also due to the one-off expenses incurred for the rights issue," it said.

For the nine-month period there was an absence of revenue contributed by the subsidiaries that were disposed of in preceding year and a decrease in the revenue generated from the trading of building materials segment.

SC Estate Builder said it was focusing on completing the existing construction contracts and it would continue to secure more contract to replenish its order book as well as to improve the overall performance of the group.

It added the current construction for affordable housing in Melaka was progressing within expectation. 

However, the group remains cautious about the current challenges in the construction industry.