Uzma 3Q net profit goes up 34% to RM12.22 mil on stronger revenue

by **Cals** Wed 26 Nov 2014, 02:39

Uzma 3Q net profit goes up 34% to RM12.22 mil on stronger revenue

KUALA LUMPUR (Nov 25): Uzma Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) posted a 34% rise in net profit to RM12.22 million for the third quarter ended Sept 30, 2014 (3QFY14) from RM9.12 million in 3QFY13, on the back of a stronger revenue, which was 16.37% higher at RM123.07 million from RM105.76 million.
The group also proposed a single-tier interim dividend of 3.78 sen per ordinary share in respect of FY14.
Meanwhile, net profit for the nine months ended Sept 30, 2014 (9MFY14) was 8.4% higher at RM29.30 million from RM27.04 in the previous corresponding quarter. Revenue for 9MFY14 stood at RM327.36 million, 11.9% higher than RM292.52 million.
The better performance was due to long long-term contracts secured by the group, it said in a statement to the local bourse.
Uzma also noted there is a slight increase of 11.9% in profit before tax to RM34.8 million in 9MFY14, which was attributable to "higher gross profit, offset by higher administrative and operating expenses, lower share of profit of investments accounted for using the equity method, and higher finance costs".
High additional expenses also arose from higher staff costs "on the grounds for future growth" and one-off professional fees of RM1.3 million incurred for two acquisitions - MMSVS Group Holdings Limited and Premier Enterprise Corporation (M) Sdn Bhd (PEC).
It said the MMSVS acquisition is expected to contribute positively to the group's future earnings, while PEC will provide earnings accretion to the company upon completion of the acquisition.
Uzma added that the group remains optimistic with the group's prospects for the remaining period to the end of financial year and next financial year, based on the positive developments within the oil and gas industry, barring any unforeseen circumstances.
Uzma closed 11 sen or 4.4% higher at RM2.61 today, giving it a market capitalisation of RM689.04 million.