Taliworks Corporation Berhad announces Q1 FY2016 with RM75 million revenue

Taliworks Corporation Berhad  announces Q1 FY2016  with RM75 million revenue

KUALA LUMPUR, 24 MAY – TALIWORKS CORPORATION BERHAD (“Taliworks” or “the Company”), an established pure-play infrastructure company engaged in water treatment, highway and toll management, waste and wastewater management, today announced its first quarter results for the financial year ending 31 December 2016 (“Q1FYE2016”) with revenue of RM75.2 million, as compared to RM70.9 million in the corresponding quarter financial year ended 31 December 2015 (Q1FYE2015). The slight increase in revenue was attributed to the higher contribution from the Company’s highway and toll management business.

Whilst the revenue was higher, the Company reported a lower earnings before interest, tax, depreciation and amortization (“EBITDA”) from continuing operations at RM26.9 million compared to RM36.0 million in Q1FYE2015. The lower reported EBITDA from continuing operations was

“We are optimistic that we will be able to maintain our profitability and overall growth in the near future as a result of our re-engineered business strategy focusing towards mature operational cash-generating utilities/infrastructure businesses.” commented by Dato’ Ronnie Lim, the Executive Director of Taliworks.

The proposed disposal of the entire China waste and wastewater management, and the proposed acquisition of a 35% equity interest in SWM Environment Holdings Sdn. Bhd. (“SWMH”) which were approved by shareholders during the recent Extraordinary General Meeting (“EGM”) were completed on 17 May 2016.

“The completion of the 35% interest in SWMH acquisition will generate a new strong immediate recurring revenue and enhance cashflow for the Company, which will continue to support Taliworks’ dividend policy.” said Dato’ Ronnie.

In addition to the recurring revenue from Taliworks newly acquired 35% interest in SWMH, SSP1, being the main revenue contributor under the water treatment, supply and distribution business will continue to run its production above its original design capacity of 950 MLD due to the increasing demand for treated water in the Klang Valley. The Company’s highway and toll management business segment is also expecting a revenue growth due to a toll hike that took effect in October 2015 and the completion of MRT groundwork which has resulted in lesser traffic congestion. The Company is also expecting compensation from the Federal Government for the non-toll hike for both the Cheras-Kajang Highway and the New North Klang Straits Bypass Expressway. Taliworks’ construction business segment was recently awarded the SSP7 Project with a contract sum of approximately RM75.9 million.

The Board of Directors of Taliworks has approved a declaration of a first single tier dividend of 2 sen per share on 1.21 billion ordinary shares of RM0.20 each, amounting to approximately RM24.2 million in respect of the financial year ending 31 December 2016.

Share