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ios developer account( profit tumbles in May-July quarter due to lockdown


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KUALA LUMPUR: Property developer Glomac Bhd said a "very difficult operating environment" due to the strict Covid-19 restrictions in June and July resulted in sharply lower sales and profits.

Net profit in the first quarter ended July 31 plunged to RM1.7mil compared with RM4.4mil made a year ago.

Turnover was down 38% to RM28.8mil from RM46.9mil.

"Revenue from property development segment for the period declined by 38% as compared to previous corresponding period, mainly due to the restricted physical construction work for ongoing project phases during the Movement Control Order (MCO) which impacted the progress of construction work," Glomac said in a filing today.

Meanwhile, revenue from property investment decreased by 37% as compared to previous corresponding period.Despite the weaker results, Glomac said its balance sheet remained robust with a cash position of RM189.9mil as at end of July. Net gearing stood at a manageable 0.26 times and net assets per share was at RM1.45.

"Glomac will be launching RM282mil of new products this year," it said in a separate statement today. "This is timely considering that most of the Group’s launched residential products are almost sold, and economic restrictions are easing," it added.

Glomac said its future results will be driven by unbilled sales of RM580mil and new launches this year.



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