GABUNGAN AQRS Bhd (GAQRS) saw a 53% drop in profit for the first quarter of its 2020 financial year (1QFY20), reporting RM4.12 mil for the quarter, compared to its 1QFY19 profit of RM11.01 mil.
This sharp dip was attributed to the reversal of the overprovision of liquidated ascertained damages (LAD) for The Peak project by the property development segment.
However, the recorded profit for the quarter is actually an increase of 20.1% quarter-on-quarter (q-o-q) with RM3.43 mil reported for the preceding quarter, attributed to an improvement in operating expense.
The group also recorded a revenue of RM76.9 mil, an 11% decrease compared to 1QFY19’s RM86.3 mil. This also marks a 5% drop q-o-q, as the preceding quarter saw a revenue of RM80.9 mil.
The group attributed the decrease in revenue to the movement control order (MCO). As construction sites were not considered essential services, the group’s construction segment had to cease operations. This meant that the group’s construction segment, which is the main driver of revenue, reported lower contributions for the quarter.
Looking forward, the group anticipates a recovery in the second half of 2021.
“In forecasting the slowdown in the construction sector, in 4Q19, we have taken the necessary steps to further improve our business fundamentals, in particular, operating costs. In January 2020, we initiated the plans to further strengthen the position of the group to weather through a recessionary period,” said GAQRS in a Bursa filing.
Presently, the group has an outstanding construction order book of RM1.7 bil, RM1.1 bil in gross development value for ongoing property development, and RM56 mil in recurring rental income.
At the end of the trading day, GAQRS’ shares were last done at 86 sen, down 1.5 sen, with 194,000 shares traded. – June 26, 2020
