CONSTRUCTION company MGB Bhd’s net profit for the fourth quarter ended Dec 31, 2019 fell 5.3% to RM3.3 mil from RM3.49 mil a year ago while revenue rose 3.91% to RM184.38 mil from RM177.45 mil.
The company’s full FY19 net profit fell 58.31% to RM13.42 mil from RM32.19 mil while revenue rose 0.41% from RM751.27 mil to RM754.34 mil.
The company said in its Bursa filing that its lower net profit was mainly due to soft profit margin from on-going construction projects and delay in replenishment of order books due to poor property market sentiment.
Excluding manufacturing activities, net finance costs rose from RM3.47 mil in the preceding year to RM5.83 mil in the current financial year following a new trade facility secured during the year which has also impacted the net profit.
The company will continue to implement rigorous cost control measures to safeguard the profit margin and remain competitive at the same time. It will focus on project execution this year to ensure the retainment of its quality and vigilantly participate in tender exercises. – Feb 27, 2020
