KUALA LUMPUR (Feb 27): Sarawak Consolidated Industries Bhd (SCIB) swung back to profit in the financial year ended Dec 31, 2019 (FY19), ending two successive years of losses.

The manufacturing and construction company posted a net profit of RM3.02 million for the year compared with a net loss of RM9.79 million in FY18, which it attributed to higher construction revenue and recognition of gain from deconsolidation of a subsidiary under creditors’ voluntary liquidation. It also incurred lower impairment loss expense compared to last year.

Revenue also improved 12.9% year-on-year to RM85.79 million from RM75.96 million.

In a bourse filing today, SCIB said the manufacturing division, being the key driver and largest contributor to the group’s revenue, reported revenue of RM77.5 million for FY19, up from RM75.9 million in FY18.

The group also returned to profit in the final quarter of last year (4QFY19), recording a net profit of RM789,000 from a net loss of RM3.92 million a year ago. This resulted in an earnings per share of 0.92 sen for 4QFY19 compared with a loss per share of 4.57 for 4QFY18.

Revenue for the quarter rose 54.6% to RM28.63 million from RM18.51 million a year ago, primarily due to increase of construction revenue from overseas and within Malaysia.

In a separate statement, SCIB group managing director and CEO Rosland Othman said moving into the new year, it believes it will remain profitable and further strengthen its financial position, after securing five engineering, procurement, construction and commissioning contracts ecent totalling RM175.4 million in Malaysia, Qatar, Oman and Indonesia.

“We will also remain focus on managing our cost structure and promoting our industrialised building system products for new projects, especially in schools and private projects. We have previously benefited for the Pan Borneo Highway project and are expecting some improvements in our order book, hence, we are expecting better results for FY20,” he added.

SCIB shares closed down 16 sen or 5.48% at RM2.76 today, with 219,500 shares done, bringing a market capitalisation of RM237.04 million.