Boilermech 1Q net profit rose 59% to RM10.1mil

by **Cals** Wed 20 Aug 2014, 01:02

Business & Markets 2014

Written by Wei Lynn Tang of theedgemalaysia.com

Tuesday, 19 August 2014 19:41

KUALA LUMPUR (Aug 19): Boilermech Holdings Bhd which manufactures, repairs, and refurbishes boilers, saw its net profit for the first financial quarter ended June 30, 2014 (1Q14) rise 59% to RM10.08 million from RM6.34 million a year ago, on improved revenue contributed by increased activity levels in manufacturing, deliveries and installation of boilers.

Revenue for 1QFY14 grew 43.9% to RM74.14 million, from RM51.53 million.

The ACE Market-listed group’s pre-tax profit margin improved to 18.5% from 16.6% in 1QFY13, due to the recovery of doubtful debts, which were provided in previous periods.

In a filing with Bursa Malaysia today, Boilermech said it is optimistic on its prospects, as its order book remains strong and its financial performance continues to be positive.

The group is in a net cash position of RM7.36 million, as at June 30.

Boilermech also said that its transfer to the Main Market of Bursa is expected to be completed by the third quarter of next year.

Meanwhile, its proposed one-for-one bonus issue of 258 million shares and proposed increase in authorised share capital from RM50 million comprising 500 million shares to RM100 million, are expected to be completed by October this year.

In a separate filing, Boilermech said it has mutually agreed with Logiston Sdn Bhd, a related party and the vendor of the land in Klang it proposed to acquire, to extend the condition period for another one month for both parties to meet the relevant conditions precedents.

Boilermech had on June 09, proposed to acquire a parcel of 99-year leasehold vacant industrial land in Mukim Klang, Selangor, for RM27.3 million cash.

The counter has risen close to 90% in the past one year, to close at RM3.35 today, giving it a market capitalisation of RM866.9 million.