KUALA LUMPUR: NCT Alliance Bhd
is expecting its flagship project, Grand Ion Majestic (GIM), to bolster its bottomline upon its completion this year, propelled by an increase in tourist arrivals to Malaysia.
In the fourth quarter ended Dec 31, NCT Alliance's net profit dropped to RM11.13mil from RM13.82mil in the year-ago quarter, while revenue rose to RM81.66mil from RM66.84mil.
Over the full financial year, the construction firm posted a net profit of RM37.56mil as compared to RM44.18mil recorded in the year before, leading to a lower earnings per share of 2.66 sen against 4.3 sen previously.
The company reported revenue of RM279.69mil in FY23 against RM241.31mil in FY22.
According to the group, the lower profit was primarily a result of the expenses related to the employee share option scheme (Esos) and restricted share grant (RSG) plan.
"The group's lower profit for the year and quarter under review were due to higher staff costs, bank facility charges and marketing promotional expenses," it said in a statement.
Group executive chairman and group managing director Datuk Sri Yap Ngan Choy said the group has focused on improving its net gearing ratio resulting in a significant reduction to 14% from 39% in the previous year.
He said key contributors include efficient cash flow collection from GIM and the successful completion of projects like Acacia Residences.
"Our improved cash flow position has enabled us to reduce project borrowings and pursue additional avenues for investment opportunities.
"Moreover, the recent completion of Acacia Residences, along with the successful sale of GIM and Grand Ion Delemen (GID) continues to spearhead the group’s revenue," he said.
