SCIB’s financial performance hit by slow progress in construction projects

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  • Thursday, 08 Aug 2013

KUCHING: Slow progress in the implementation of construction projects has affected Sarawak Consolidated Industries Bhd’s (SCIB) financial performance.

In the latest second quarter to June 30, SCIB’s group revenue fell by about 8% to RM15.6mil from RM17mil in the corresponding period last year.

The manufacturing segment contributed RM14.1mil to group turnover, with the construction segment chipping in RM1.5mil.

The group recorded a pre-tax profit of RM215,000, a reversal from pre-tax loss of RM849,000 during the periods of comparison.

The loss in second quarter-2012 was due mainly to the recognition of impairment losses on trade receivables of RM844,000.

In the quarter under review, the group registered some improvements in profit margin, SCIB said in explanatory notes to its latest financials.

On a six-month basis, SCIB posted a group pre-tax profit of RM380,000 on lower revenue of RM30.5mil as compared with the pre-tax loss of RM760,000 on revenue of RM30.8mil in first half-2012.

“The manufacturing division, being the key driver and largest contributor to the group’s revenue, reported revenue of about RM28mil for both the six-month period to June 30 in 2013 and 2012,” according to the company.

There was yet any contribution from the group’s property division as associated firm Influx Meridian Sdn Bhd has not commenced its development works.

SCIB said the industrialised building system (IBS) products and foundation piles recorded higher contributions to the profits.

To meet increasing demand, SCIB is investing RM6mil in two new production lines to raise the capacity of the spun piles and RM1.3mil in a new production line for the IBS plant in Demak Laut Industrial Park.

The new production facilities, according to company chairman Tan Sri Hamid Bugo, would be commissioned by January next year.

The group currently owns three factories that make precast concrete products and IBS components.

Expecting better performance in the second half of this year, SCIB said the group would actively seek more projects to add to its existing order book of RM18mil.

“The rolling out of major projects under the 10th Malaysia Plan and Sarawak Corridor of Renewable Energy (SCORE) will provide greater opportunities for the group by virtue of our leadership position in precast concrete products and IBS components in Sarawak,” SCIB added.

“The group shall focus on managing its cost structure.”

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