Author Topic: PRESS RELEASE: POWERWELL REPORTS REVENUE OF RM24.5 MILLION FOR ITS FOURTH QUARTE  (Read 253 times)

Offline Abu Brew

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PRESS RELEASE
FOR IMMEDIATE RELEASE


POWERWELL REPORTS REVENUE OF RM24.5 MILLION FOR ITS FOURTH QUARTER


Shah Alam, 23 February 2021 – Powerwell Holdings Bhd (“Powerwell” or the “Group”), is pleased to announce its fourth quarter results for the 15-month financial period ending 31 March 2021 (“FPE 2021”).

For its fourth quarter for the 15-month FPE 2021, Powerwell registered a revenue and profit before tax (“PBT”) of RM24.5 million and RM0.1 million respectively as compared to a revenue of RM21.8 million and PBT of RM2.4 million in the previous financial year ended 31 December 2019’s (“FYE 2019”) corresponding quarter. The increase in revenue was mainly due to higher sales from major projects like MRT2 and the TRX Mall. The lower PBT was mainly due to lower profitability in some projects, higher raw material price (i.e. copper price) compounded by depreciation of RM/USD, higher costs incurred on sub-contractor works, higher site management fees and site installation fees and higher net impairment loss on trade receivable.

For the first 12 months of the 15-month FPE 2021, Powerwell recorded a revenue and loss before tax of RM79.7 million and RM3.4 million respectively, as compared to a revenue of RM88.1 million and PBT of RM13.1 million in the FYE 2019. This was mainly due to the COVID-19 pandemic which led to lower number of projects delivered and a one-off listing expense of RM4.5 million where RM4.2 million was charged out in the first quarter of 2020. Excluding the listing expense, the PBT would have been RM0.8 million. As at 31 December 2020, Powerwell’s balance sheet remained healthy with a low gearing ratio of 0.07x.
 
Powerwell executive director Ricky Lee said, “Year 2020 has been a very difficult and challenging year. The COVID-19 pandemic has affected both local and global economies through lockdowns, closure of international borders and so forth. We have taken swift actions to mobilise the necessary resources to protect the health and safety of our employees by applying strict standard operating procedures as recommended by the health authorities. The Group had also implemented various measures to ensure minimal disruptions to its project timeline, payments as well as business operations.”

He added, “With the recent surge in COVID-19 cases in Malaysia, Movement Control Order (MCO 2.0) was imposed in most states in Malaysia by the Malaysian government. This is expected to impact the Group’s operations in its fifth quarter for the FPE 2021. Nonetheless, as various countries roll out their vaccination programmes and the global economy is expected to gradually recovers in 2021, the Group is optimistic of its prospects in the calendar year 2021 with its current outstanding order book of RM65.7 million, which is expected to provide earnings visibility for Powerwell until 2022. Accordingly, the Group will step up the pace of its projects pipeline and sales activities. The Group will also remain focused on generating profitability and ensuring sufficient cash flows in order to create value and maximise returns for our shareholders.”


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About Powerwell Holdings Berhad
Powerwell Holdings Berhad is an investment holding company. Through its subsidiaries, the group is principally involved in the design, manufacturing and trading of electricity distribution products which comprise low voltage (LV) switchboards, medium voltage (MV) switchgears and related products. All the LV switchboards and MV switchgears are customised equipment that are tailored to the needs of a building or an infrastructure.

With Malaysia, Vietnam, Bangladesh, Indonesia, Philippines, Singapore, Thailand and Pakistan being its principal markets, this global specialist in electricity distribution products has an impressive track record of innovation success from experience gained over the last 25 years.

For more information on Powerwell, please log on to http://www.powerwell.com.my/