Highlight Construction biz drives Vivocom's 1Q earnings up 27 times; mulls bonus issue, free warrants

by **Cals** Thu 12 May 2016, 23:09

Highlight

[size=28]Construction biz drives Vivocom's 1Q earnings up 27 times; mulls bonus issue, free warrants

By Chester Tay / theedgemarkets.com | May 12, 2016 : 6:24 PM MYT

KUALA LUMPUR (May 12): Vivocom Intl Holdings Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) jump 27 times to RM25.12 million, from RM923,000 a year ago, driven by the group’s construction business.

Earnings per share thus rose to 0.81 sen, from 0.09 sen previously, its bourse filing today showed.

Vivocom’s revenue for 1QFY16 also rocketed 20 times to RM141.54 million, from RM7.04 million.

Vivocom said the construction segment contributed 88.9% or 125.81 million to the group’s total revenue under the quarter under review, while its manufacturing division contributed 5.7%, with the remaining 5.4% coming from its telecommunication towers business.

In a separate statement, Vivocom executive director Choo Seng Choon said the board of directors is “confident and optimistic” of the group’s outlook.

“We will not rest on our laurels and the management team have all pledged to walk the extra mile to secure more projects in the foreseeable future, and to ensure that our projects are delivered promptly and on time and to the highest standards possible for our clients,” he said.

Choo also revealed that the group is looking at “various ways” to reward shareholders.

“Amongst the various options [that] the board of director is considering is possibly a bonus share issue or a free warrants issue. Once finalised, they will be announced in due course,” he said.

Vivocom was the second most actively-traded counter today, with over 113 million shares done. Its share price rose half sen or 1.41% to 36 sen at market close today, giving it a market capitalisation of RM918.48 million.
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