Widad 4Q loss narrows on tax gains; revenue down 65%

TheEdge Wed, Mar 31, 2021 06:54pm - 1 month ago

KUALA LUMPUR (March 31): Widad Group Bhd saw a smaller quarterly loss of RM488,000 or 0.02 sen per share for the fourth quarter ended Dec 31, 2020 from RM6.12 million or 0.25 sen per share a year earlier, supported by a swing to tax gains.

This was despite revenue falling 65.22% to RM23.94 million from RM68.84 million previously, due to lower recognition of revenue for the existing project under the construction segment, while contribution from its integrated facilities management (IFM) rose.

For the full-year, Widad said its net profit fell 66.57% to RM4.01 million or 0.16 sen per share, from RM12 million or 0.49 sen per share in the previous year as revenue plunged under its construction segment while the IFM segment revenue also fell.

Full-year revenue was booked at RM85.85 million, down 54.09% from RM186.99 million previously.

This is mainly due to work stoppages as a result of the Movement Control Orders beginning from March 18, 2020 amid the Covid-19 pandemic, Widad said in its bourse filing.

“Additionally, revenue recognition for the construction segment was lower due to projects being at the tail-end stage and the projects were given extension of time up to the end of 2021,” the group added.

On prospects, Widad said its construction segment has an outstanding order book of RM185 million, adding that it will tender for projects as well as submit “private initiative proposals to the Government and its agencies”.

For the IFM segment, Widad has an outstanding order book of RM179 million, coupled with a recently-secured Langkawi jetty ferry terminal IFM worth RM21 million. It has also acquired a company with concession to develop and maintain a university campus in Melaka with an outstanding value of RM791 million.

Shares of Widad closed unchanged at 58.5 sen today, valuing the group at RM1.59 billion.

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