CONSTRUCTION and property-based Ireka Corp Bhd has re-discovered its core competency with the securing of a fibre-to-the-home (FTTH) connectivity project in Langkawi (Kedah) by its wholly owned subsidiary Ireka Engineering & Construction Sdn Bhd.
A filing with Bursa Malaysia today shows that the contract awarded by Fec Telco Sdn Bhd is for a provisional sum of RM196 mil subject to terms and conditions. Fec Telco is a wholly-owned subsidiary of Wanland Metro Sdn Bhd.
The contract shall be undertaken in two portions. The first portion is construction and engineering works related to the installation and provisioning of communication services to end-users, including the supply and installation of fibre-optic cables and all related equipment, pole installations and commissioning works.
The second potion is the network, information technology (IT) and services components which encompass the design and operations of the fibre-to-the-home network, business system support inclusive of all IT, operation support system and over the top services to the targeted end-users.
“We are thrilled with this latest contract win. Ireka’s future direction is to focus on its ‘back-to-basic’ approach where we focus on our core strength in construction, infrastructure works, telecommunication infrastructure development as well as property development,” commented Ireka’a new managing director Mohd Hasnul Ismar Mohd Ismail.
“This also reflects the market’s confidence over our expertise, experience and track record in the industry.”
A well-known corporate figure in his role as the group managing director of the Shoraka Group of Companies as well as managing partner of Shoraka Advisory Services in Dubai, Mohd Hasnul has taken over the helm at Ireka following the resignation of the Lai family as they reduced their stakes in the company back in July.
Under Mohd Hasnul’s leadership, Ireka has re-emerged as a company that is streamlined to focus on its competitive advantage and expertise in the construction, infrastructure, telecommunication infrastructure development and property development.
Within months of joining the group, Ireka has won an award for construction works valued at RM124.39 mil in a joint venture (JV) project.
In August, Ireka Engineering & Construction signed a JV agreement with Wanland Metro Sdn Bhd to be the main contractor for construction jobs that set the path for Ireka to participate in affordable housing projects which offer a more reasonable risk profile given the current state of the property market in Malaysia.
Elsewhere, the group has completed a kitchen sinking exercise as seen by the impairment loss arising from the re-classification of Aseana Properties Ltd (ASPL) as an associate company to an investment of RM25.9 mil, retirement benefits of certain ex-directors of about RM3.5 mil and losses incurred by the business segment due to COVID-19 pandemic (from disruption of business and operations).
This has also helped to address some of the concerns raised by the group’s external auditor Crowe Malaysia PLT over a material uncertainty in relation to the carrying amount of Ireka’s investment in ASPL and its subsidiaries.
Going forward, Ireka will explore more fund-raising activities to strengthen its cash flow and balance sheet in order to undertake more projects in the future.
The group has also recently completed a successful private placement exercise that has raised RM11.3 mil. The strong response from potential investors is a reflection of the confidence the market has in Ireka’s management to steer the group back into profitability and to accelerate its turnaround plans.
At the close of today’s trading, Ireka was up 0.5 sen or 0.74% to 68 sen with 9.71 million shares traded, thus valuing the company at RM140 mil. – Oct 7, 2021
