Crescendo Corp Bhd Q4 net profit drops 90.4% on lower properties sales

Crescendo Corp Bhd Q4 net profit drops 90.4% on lower properties sales

PETALING JAYA, 31 March: Crescendo Corp Bhd saw its net profit for the fourth quarter ended Jan 31, 2016 (Q4FY16) drop 90.4% to RM3.3 million, from RM34.4 million in the previous corresponding quarter, mainly due to lower properties sales.

Revenue for the quarter decreased 19% to RM61.4 million, compared with RM75.6 million a year ago.

In a filing with Bursa Malaysia yesterday, the group said the lower revenue and operating profit for its property development and construction operation were mainly due to lower properties sales caused by unexpected delay in new launches and slower demand in properties.

For the full year, the group’s net profit down 85% to RM17.8 million, against RM119.7 million a year earlier, while revenue dropped 28% to RM194.6 million, from RM268.9 million previously.

On prospects, Crescendo expects the market condition to remain uncertain in the near term, in view of the various cooling measures implemented by the government, including tight credit control by banks, implementation of the Goods and Service Tax, as well as the weak ringgit.

However, the group said it has well positioned itself to face these challenges, as its ongoing projects are located strategically in the economic zone within Iskandar Malaysia, and will be cautious in its launches to avoid holding a high level of stock.

“For our Bandar Cemerlang project which was launched in November 2015, it was well taken-up where 60% of the 179 units of landed residential property launched were taken up.”

“We expect more than 90% of the launched units will be sold within the next few months,” it added.

With the unbilled sales from the total committed property sales as at Jan 31, 2016, and new sales committed after Jan 31, 2016, of RM78 million, the board expects the group’s performance to remain satisfactory for the financial year ending Jan 31, 2017.

The group has recommended a final single tier dividend of 3%, in respect of the financial year ended Jan 31, 2016.

Crescendo develops and invests in properties, trades and manufactures concrete products, and provides educational services.

It also trades building materials and has an operation in civil engineering works.

–THE SUN

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