PETALING JAYA: Glomac Bhd
expects its financial year 2024 (FY24) to be another challenging year amidst growing concerns on inflation, labour shortage, rising interest rates and material costs that are expected to affect the property sector.
For the fourth quarter ended April 30, 2023 (4Q23), the property developer and management company saw its revenue increasing 78% year-on-year (y-o-y) to RM131.1mil, underpinned by higher revenue from its property development and property investment segments.
Net profit, however, fell 16% y-o-y to RM13.9mil or an earnings per share of 1.81 sen due to higher construction and other operating costs.
In a filing with Bursa Malaysia, Glomac stated revenue from its property development segment for the quarter under review stood at RM125.5mil, representing an increase of 81% y-o-y. For the cumulative year-to-date (YTD), revenue for the said segment came to RM319.4mil, up by 31% y-o-y.
Revenue from its property investment segment, which comprised mainly of rental income, increased by 33% y-o-y to RM5.4mil in 4Q23.
Cumulative YTD, this segment’s revenue surged by 38% y-o-y to RM20.5mil. In its filing, the group noted rental income of carpark and properties saw a gradual increase on the back of the lifting of Covid-19 pandemic restrictions.
Glomac has proposed a single-tier final dividend of 1.25 sen per share for the financial year ending April 30, 2023.
Meanwhile in April, Glomac entered into a share sale agreement with its group executive chairman and major shareholder, Tan Sri Mohamed Mansor Fateh Din and Mohd Yasin Loh Abdullah, for the proposed acquisition of the remaining 49% equity interest in Glomac Bina Sdn Bhd for a total cash consideration of RM16.3mil.
This purchase consideration is expected to be satisfied entirely from internally generated funds. The completion of the acquisition will see Glomac Bina, a building contractor, becoming a wholly owned-subsidiary of the group.
Glomac stated in a statement this move will enable it to streamline its group structure and gain 100% control of Glomac Bina to be in the position to drive the future strategic direction of the company.
