KUALA LUMPUR: Eco World International Bhd (EcoWorld International), which secured sales totaling RM524mil in the first four months of the financial year ending Oct 31, 2023 (FY23), is on track to achieve its target of RM1.4bil.
“EcoWorld International achieved RM335mil sales plus reserves of RM189mil, totalling RM524mil in the first four months of FY23,” it said in a statement.
The developer said its focus on selling completed stocks had enabled significant cashflows to be generated.
EcoWorld International president and CEO Datuk Teow Leong Seng said the group’s focus on selling our completed stocks is achieving the intended result of accelerating cash generation.
“Sales remain steady in the first four months of FY23 with Embassy Gardens contributing RM125mil, followed by Wardian, London City Island and Oxbow bringing in RM67mil, RM63mil and RM33mil respectively,” he said.
“Despite homebuyers becoming more cautious following increases in interest rates, shortage of homes continues to provide support for housing demand. We plan to sustain our sales momentum by offering attractive incentive packages to buyers and tapping overseas demand through international marketing events. This will enable significant additional cashflow to be generated for the group in the upcoming quarters,” he added.
Teow disclosed that its our development plan for the Macquarie Park site in Australia had received approval from the relevant authorities in February 2023.
“However, given elevated uncertainties in the current property market we
are reviewing our options for the site,” he said, adding that a similar stand would be taken with regard to the group’s existing unlaunched projects in the UK.
Feasibilities will be carefully examined and stress tested and any launches will proceed only after cost pressures stabilise and expected returns that meet the group’s requirements can be forecast with greater certainty.
“Our focus this year will continue to be the monetisation of stocks, cash preservation and generation in order to deliver the promised distribution of excess cash to shareholders which is proceeding in accordance to plan based on the sales and reservations that we have achieved to date,” Teow said.
In the first quarter ended Jan 31, EcoWorld International posted a wider net loss of RM30.82mil, or loss per share of 1.28 sen on revenue of RM22.4mil.
It said the losses were mainly due to due to foreign exchange losses of RM25.97mil in the current quarter. The forex losses arose from the weakening of the British pound against ringgit.
“Subsequent to 1Q23, the pound has appreciated. Should the pound remain at its current level or continue to strengthen against the ringgit, the foreign exchange losses recognised in 1Q23 will be fully or partially reversed in later quarters,” it said.
EcoWorld International’s net cash position has improved from RM172.5mil as at Oct 31, 2022 to RM 446.2mil as Jan 31, representing an increase of 159%.
The group said its net cash is expected to strengthen further in the coming quarters as funds at its UK joint ventures are repatriated.
“Accordingly, subject to achieving the sales target and receiving the relevant regulatory approvals, the board’s intention to distribute the RM900mil estimated excess cash to shareholders in the later part of 2023 is progressing as planned,” it added.