Author Topic: Vertice's Revenue Increased by 442%  (Read 72 times)

Offline Abu Brew

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Vertice's Revenue Increased by 442%
« on: May 31, 2019, 11:10:48 AM »
KUALA LUMPUR, MALAYSIA – MAY 30, 2019
           
Vertice Berhad (“Vertice” or “the Group”) is pleased to announce its financial results for the quarter ended 31 March 2019, being the last quarter of its 15-months financial period ended 31 March 2019.

For the quarter under review, the Group recorded an impressive 442%, year on year increase in revenue to RM44 million, primarily attributed to the construction division’s on-going projects progressing with higher value of work done and the commencement of new projects, including two new projects secured with contract values ranging from RM10 million to RM21 million. The division’s profit before tax (“PBT”) for the quarter was RM1.6 million as compared to the RM0.1 million recorded in the corresponding three months in 2018, representing a 15-fold increase.

For the 15-months financial year ended 31 March 2019, the construction division’s revenue was RM124 million. If compared to a 15-months period ended 31 March 2018, the RM124 million represents an increase of 368%. PBT for the construction division was RM5.9 million. However, at the Group level, a consolidated net loss of RM5.2 million was recorded due to losses incurred in the fashion retail business and investment holding company.

The construction of the by-pass from Bandar Baru Ayer Hitam connecting to Lebuhraya Tun Dr Lim Chong Eu (Package 2 of the Penang Mega Infrastructure Project) ("PMIP") is targeted to commence on 1 September 2019. This RM815 million project was awarded to the Group's construction arm, Vertice Construction Sdn Bhd, through its 50:50 joint venture company, Buildmarque Construction Sdn Bhd and is expected to contribute positively to the Group’s financials.

Vertice Board of Directors commented, “We are delighted that our construction business continues to do well and contributes positively to our top and bottom line. Our construction arm is growing rapidly to generate better returns. Earnings will improve further once we complete the 60% disposal of our fashion retail division, which is still incurring losses.

The Group foresees the construction division to continue providing strong earnings streams to enhance the Group’s profitability and returns on shareholders’ funds.”

To date, the Group has a total outstanding orderbook of over RM1 billion which will contribute to the Group’s earnings visibility up to 2022. The Group’s balance sheet remains healthy with a current ratio of 2.65 times, gross gearing of 0.01 times and a cash and cash equivalent position of RM18.1 million as at 31 March 2019.