KUALA LUMPUR: S P Setia surpassed its targeted sales of RM3.8bil by achieving a total sales of RM3.82bil amidst the Covid-19 pandemic.
S P Setia said its registered revenue of RM3.22bil for the full financial year ended Dec 31,2020 (FY20).
However, impairment provisions of RM475.9mil made in the previous second and third quarters of FY20 nevertheless resulted in the group registering a loss before tax of RM156.7mil for the year in review.
“The provisions, largely for the impairment of the work in progress and inventories under construction of £62.4mil (RM336.3mil) arising from the group’s 40% owned joint venture company, Battersea Project Holding Company Ltd, UK in the third quarter FY2020, were made as a prudent measure and had no impact on the group’s cashflow position.
“Excluding these impairment provisions, the group would have a profit before tax of RM319.2mil for the year in review, ” S P Setia said in a statement.
In respect of the Islamic Redeemable Convertible Preference Shares A and Islamic Redeemable Convertible Preference Shares B, S P Setia declared a preferential dividend of 6.49% per annum and 5.93%per annum respectively for the financial period from July 1,2020 to Dec 31,2020.
President and CEO Datuk Khor Chap Jen said: “It is worth noting that the group recorded a significant surge of RM1.56bil in sales during the last quarter of FY20 against the backdrop of a resurgence in Covid-19 cases and subsequent re-implementation of the MCO, and a substantial RM1.45bil of bookings in the pipeline, ”
“We continue to see genuine buyers who are still looking to own properties and to invest at this time to take advantage of the many promotions and offerings made available, ” he added.
S P Setia said local projects contributed RM3.11bil or 81% of the sales whilst the remaining RM716mil or 19% were contributed largely by international projects.
On the local front, sales were mainly from the central region with RM2.28bil, aided by RM312mil contribution from the Northern region, while the Southern region contributed RM415mil.
“We managed to clear RM695mil of completed inventories in FY20 and will continue to do so in FY21.
“We will also continue fast-tracking the group’s digital transformation journey and enhancing digital touchpoints to reach and engage with potential customers while implementing new measures to reorient our product offerings, optimising our land banks utilisation and Team Setia’s capabilities as part of our strategies to build resilience against future disruption, ” he said.
Khor said S P Setia will maintain its sales target of RM3.8bil for FY2021.