AWC's 1Q profit up 20% on stronger revenue, forex translation gain

TheEdge Tue, Nov 27, 2018 09:27pm - 5 years View Original


KUALA LUMPUR (Nov 27): AWC Bhd (AWC) posted a 20% growth in net profit to RM6.07 million in the first quarter ended Sept 30, 2018 (1QFY19) from RM5.06 million a year ago, as revenue strengthened while cost of sales fell.

Earnings was also boosted by a gain on foreign currency translation difference of RM1.04 million, its stock exchange filing today showed, versus a loss of RM74,000 a year ago.

Revenue for the quarter grew 3% to RM68.49 million from RM66.2 million, while cost of sales retreated 4% to RM47.22 million from RM49.32 million.

Its biggest division, the facilities, recorded a 19% growth in revenue at RM42.1 million and a 15% growth in profit before tax (PBT) to RM5.6 million, mainly on contributions from four new projects in Putrajaya and the Capital Asset Refurbishment Programme.

Its environment division recorded a marginal revenue fall of 1% to RM15 million, while PBT shrank 5% to RM2.7 million, as recovery of bad debts declined. As for its third division, engineering, though revenue fell 16% to RM18.1 million on project delays, PBT jumped 10 times to RM1.2 million due to lower operating costs.

“I am pleased to announce a stronger 1QFY19 set of results compared with the corresponding quarter, a year ago. I believe what lies ahead of us will be exciting and thrilling, as we continue to thrive and deliver, as well as create immense value for shareholders,” noted AWC managing director & group CEO Dato’ Ahmad Kabeer.

AWC said its balance sheet remained robust as at end-September, with a net cash position of RM23.4 million and current ratio of 3.3x.

The group’s current outstanding order book stands at approximately RM920 million, which will continue to provide clear earnings visibility to the group for the next few financial years.

The group's shares slipped 1 sen or 1.24% to settle at 80 sen today, giving the group a market capitalisation of RM225.37 million.

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