Tuesday, 20 February 2018

(NST) Bina Darulaman bullish of better prospects despite posting first loss since 1998

KUALA LUMPUR: Bina Darulaman Bhd posted its first full-year loss since 1998, following a slash in revenue in the fourth quarter of 2017.

The company said in a statement that it was confident of better prospects for the current financial year with a strong cash reserve of RM119.8 million and total assets of RM802 million.

Bina Darulaman’s quarterly revenue dropped 64.5 per cent to RM54.68 million to plunge it into the red with a net loss of RM10.42 million in the fourth quarter ended Dec 31 2017.

This pushed its full-year results to a RM7.81 million net loss from RM34 million net profit a year ago. Group revenue for the year declined 29.41 per cent to RM251.71 million from RM356.59 million previously.

Bina Darulaman attributed the loss to lower contribution from its property, road building and quarry divisions.

Group managing director Datuk Izham Yusoff said the revenue drop was mainly attributed to the property development segment which recorded a fall of 62 per cent year-on-year due to lower progress billings.

“The drop in revenue is also a result of continued stringent housing loan application rulings which limited customers’ access to desired funding. This resulted in many customers having to cancel their bookings.

“Many of those who went on to purchase had to make compromises by switching from earlier preferred products priced at more than RM400,000 to more affordably-priced products to facilitate successful funding application,” Izham said in the statement.

The company expects its core businesses to record reasonable performance this year.

“We have adequate land bank and projects in hand to provide sustainable revenue,” it said.

However, it said softer property market sentiment is expected to continue this year.

“We will be focusing on clearing our unsold medium cost to high end residential projects in Bandar Darulaman, Darulaman Perdana and Kuala Kangsar,” it added.

Profit contribution from the road and quarry division is expected to remain stable based on the current demand for its quarry products from Bukit Perak Quarry and Kulim Premix Plant.

“We expect steady flow of income from the ongoing road and highway maintenance projects.”

Its construction division will be focusing on completing and delivering all ongoing projects within scheduled time and quality.

“We will continue to support the property division in developing affordable houses during the year.”

Meanwhile, its leisure division is expected to register improved performance in the near term after the opening of a new water theme park.