Author Topic: VERTICE’S REVENUE SURGED BY 58%  (Read 81 times)

Offline Abu Brew

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VERTICE’S REVENUE SURGED BY 58%
« on: February 28, 2019, 09:36:38 AM »
KUALA LUMPUR, MALAYSIA – FEBRUARY 27, 2019
           
Vertice Berhad (“Vertice” or “the Group”) is pleased to announce its financial results for the quarter and year-to-date ended 31 December 2018. The Group announced on 27 November the change of its financial year end from 31 December 2018 to 15-months ending 31 March 2019.

For the quarter under review, the impressive 58%, year on year, increase in revenue to RM53.3 million was primarily attributed to the construction business on-going projects progressing with higher capacity in terms of value of work done which resulted in higher progress billings. The commencement of two new projects secured with contract values ranging from RM10 million to RM25 million and an existing contract with additional scope of works further improves the revenue for the current quarter as compared to preceding year corresponding quarter.

As compared to the preceding year corresponding quarter loss after tax of continuing operations of RM2.2 million, the current quarter profit after tax of RM0.3 million was mainly contributed by the construction business’ outstanding performance. The construction business recorded a RM1.6 million profit before tax (“PBT”) as compared to RM0.4 million achieved in the preceding year corresponding quarter.   

The year-to-date revenue increased by 67% or RM80 million from RM120 million in preceding year corresponding period to RM201 million. The construction business contributed 77% or RM62 million out of the increase of RM80 million.

The construction business year-to-date PBT was RM4.1 million in contrast to RM0.7 million recorded in the preceding year corresponding period. This was achieved with more contracts secured and more progress billings in the current financial year as compared to last financial year.  As a result of the increasing positive returns propelled by the construction division, the Group’s overall balance sheet improved significantly. Net asset per share rose to RM0.78 as at 31 December 2018 compared to the previous RM0.64 per share as at 31 December 2017.

In January 2019, the Group's construction arm, Vertice Construction Sdn Bhd, through its 50:50 joint venture company, Buildmarque Construction Sdn Bhd, accepted the letter of award of contract worth RM815 million for the construction of a by-pass from Bandar Baru Ayer Hitam connecting to Lebuhraya Tun Dr Lim Chong Eu (Package 2 of the Penang Mega Infrastructure Project) ("PMIP"). The project is expected to commence construction on 31 August 2019. It is expected to contribute positively to the Group’s financials.
To date, the Group has a total outstanding orderbook of over RM700 million which will contribute to the Group’s earnings visibility up to 2022. The Group’s balance sheet remains healthy with a current ratio of 3.25 times, gearing of 0.05% and a cash and cash equivalent position of RM37.4 million as at 31 December 2018. 

To date, the Group has a total outstanding orderbook of over RM700 million which will contribute to the Group’s earnings visibility up to 2022. The Group’s balance sheet remains healthy with a current ratio of 3.25 times, gearing of 0.05% and a cash and cash equivalent position of RM37.4 million as at 31 December 2018. 

Vertice Board of Directors commented, “We are delighted that our construction business continues to prosper and bringing in steady and increasing revenue and profits. This demonstrates that our construction arm is growing steadily.
In line with the Group's diversification initiatives, our construction business is continuously sourcing for new projects to enhance its order book. Such potential projects are expected to contribute positively to the Group’s financials. We are confident of securing more contracts from the PMIP in view that the said PMIP total contract value is RM6.0 billion (excluding Feasibility Study & Detailed Design worth RM305 million). With more packages being secured from the PMIP, the Group is expected to be kept busy for the next 10 years in terms of its construction business activities. The Group will continue with its diversification into infrastructure and property investment which will provide additional earnings streams which is expected to enhance the Group’s profitability and returns on shareholders’ funds.”

Offline master wahsing

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Re: VERTICE’S REVENUE SURGED BY 58%
« Reply #1 on: February 28, 2019, 09:59:32 AM »
KUALA LUMPUR, MALAYSIA – FEBRUARY 27, 2019
           
Vertice Berhad (“Vertice” or “the Group”) is pleased to announce its financial results for the quarter and year-to-date ended 31 December 2018. The Group announced on 27 November the change of its financial year end from 31 December 2018 to 15-months ending 31 March 2019.

For the quarter under review, the impressive 58%, year on year, increase in revenue to RM53.3 million was primarily attributed to the construction business on-going projects progressing with higher capacity in terms of value of work done which resulted in higher progress billings. The commencement of two new projects secured with contract values ranging from RM10 million to RM25 million and an existing contract with additional scope of works further improves the revenue for the current quarter as compared to preceding year corresponding quarter.

As compared to the preceding year corresponding quarter loss after tax of continuing operations of RM2.2 million, the current quarter profit after tax of RM0.3 million was mainly contributed by the construction business’ outstanding performance. The construction business recorded a RM1.6 million profit before tax (“PBT”) as compared to RM0.4 million achieved in the preceding year corresponding quarter.   

The year-to-date revenue increased by 67% or RM80 million from RM120 million in preceding year corresponding period to RM201 million. The construction business contributed 77% or RM62 million out of the increase of RM80 million.

The construction business year-to-date PBT was RM4.1 million in contrast to RM0.7 million recorded in the preceding year corresponding period. This was achieved with more contracts secured and more progress billings in the current financial year as compared to last financial year.  As a result of the increasing positive returns propelled by the construction division, the Group’s overall balance sheet improved significantly. Net asset per share rose to RM0.78 as at 31 December 2018 compared to the previous RM0.64 per share as at 31 December 2017.

In January 2019, the Group's construction arm, Vertice Construction Sdn Bhd, through its 50:50 joint venture company, Buildmarque Construction Sdn Bhd, accepted the letter of award of contract worth RM815 million for the construction of a by-pass from Bandar Baru Ayer Hitam connecting to Lebuhraya Tun Dr Lim Chong Eu (Package 2 of the Penang Mega Infrastructure Project) ("PMIP"). The project is expected to commence construction on 31 August 2019. It is expected to contribute positively to the Group’s financials.
To date, the Group has a total outstanding orderbook of over RM700 million which will contribute to the Group’s earnings visibility up to 2022. The Group’s balance sheet remains healthy with a current ratio of 3.25 times, gearing of 0.05% and a cash and cash equivalent position of RM37.4 million as at 31 December 2018. 

To date, the Group has a total outstanding orderbook of over RM700 million which will contribute to the Group’s earnings visibility up to 2022. The Group’s balance sheet remains healthy with a current ratio of 3.25 times, gearing of 0.05% and a cash and cash equivalent position of RM37.4 million as at 31 December 2018. 

Vertice Board of Directors commented, “We are delighted that our construction business continues to prosper and bringing in steady and increasing revenue and profits. This demonstrates that our construction arm is growing steadily.
In line with the Group's diversification initiatives, our construction business is continuously sourcing for new projects to enhance its order book. Such potential projects are expected to contribute positively to the Group’s financials. We are confident of securing more contracts from the PMIP in view that the said PMIP total contract value is RM6.0 billion (excluding Feasibility Study & Detailed Design worth RM305 million). With more packages being secured from the PMIP, the Group is expected to be kept busy for the next 10 years in terms of its construction business activities. The Group will continue with its diversification into infrastructure and property investment which will provide additional earnings streams which is expected to enhance the Group’s profitability and returns on shareholders’ funds.”
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