Glomac 1Q net profit up 14.9% to RM17.87m

by **hlk** Wed 21 Sep 2011, 21:53

KUALA LUMPUR: GLOMAC BHD [] posted net profit of RM17.87 million in the first quarter ended July 31, 2011, which a 14.9% increase from the RM15.55 million a year ago, putting the property company on a firm footing for its current financial year.

It said on Wednesday, Sept 21 revenue increased a marginal 1.2% to RM127.83 million from RM126.31 million from a year ago due to its a mix of recent and on-going project launches. Earnings per share were 6.10 sen compared with 5.32 sen. Its cash position increased to RM361.60 million as at July 31 from RM176.70 million on April 30.

The better financial performance was due to contributions from previously sold out projects such as Glomac Tower, Glomac Damansara, Bandar Saujana Utama and Glomac Cyberjaya 2 - phase 1.

Ongoing projects such as the launch of Glomac Damansara Residences serviced apartments with gross development value (GDV) of RM285 million contributed to the earnings growth.

Glomac executive chairman Tan Sri F.D. Mansor described the 1Q results as a “good start to the new financial year” from the Glomac Damansara Residences project.

“Sales momentum had also sustained, as we chalked up new sales of RM100 million in the first quarter, compared to RM80 million new sales achieved over the same period last year,” he said.

He added the launches in the townships of Bandar Saujana Utama and Saujana Rawang continue to do well and new sales were bolstered by the initial sales contribution from Glomac Damansara Residences which was more than 75% sold.

“This year, we look forward to the launch of several new projects, including the RM250 million Mutiara Damansara Residences, Glomac Cyberjaya 2, a RM250 million commercial project and Glomac Utama, a RM400 million mixed development strategically located in the Petaling Jaya growth corridor.

He said the group had prime development projects nearly RM4 billion which would underpin its medium term prospects. Its unbilled sales were RM550 million.

Glomac, which has previously developed residential development such as Aman Suria, on 53-acre freehold land, has a total landbank of around 800 acres in the Klang Valley.