Goldis Q4 net profit jumps four fold

PETALING JAYA: Goldis Bhd's net profit for the fourth quarter ended Dec 31, 2014 (Q4) jumped almost four fold to RM45.33 million from RM11.71 million a year ago due to better performance in property investment and management (retail and commercial segment) as well as property development.
Revenue for the quarter rose 29.96% to RM323.80 million from RM249.16 million a year ago.
For the financial year ended Dec 31, 2014 (FY14), net profit rose marginally to RM102.17 million from RM101.24 million a year ago while revenue rose 15.84% to RM1.29 billion from RM1.11 billion a year ago.
The group's major contribution to revenue and profit is derived from property investment and management of property such as malls, offices and property development, construction and hotels after the consolidation of IGB Corp Bhd performance.
However, it noted that the comparative financial performance for the preceeding period ended Dec 31, 2013 was only made up of 11 months due to the change in its financial year end from Jan 31 to Dec 31 in December 2013.
In a filing with Bursa Malaysia yesterday, the group said the retail segment of its property investment and management represented by IGB REIT, the owner of Midvalley Megamall and The Gardens Mall, registered a higher revenue of RM452.5 million and segment results of RM282.4 million in FY14, compared with revenue and segmental results of RM381 million and RM204.6 million respectively for the 11 months ended Dec 31, 2013.
It attributed the improved performance to the increase from assets enhancement initiatives and turnover rentals.
For the commercial segment of its property investment and management, revenue and segmental results were higher at RM193.2 million and RM101.4 million respectively in FY14, compared with revenue and segmental results of RM178.4 million and RM95.8 million respectively for the 11 months ended Dec 31, 2013.
For property development, revenue and segmental results were higher at RM184.7 million and RM98.3 million respectively in FY14, compared with revenue and segmental results of RM138.2 million and RM73.8 million respectively for the 11 months ended Dec 31, 2013.
Meanwhile, the hotel segment revenue was higher at RM368.2 million in FY14 compared with RM353 million in the 11 months ended Dec 31, 2013 due to a stable occupancy rate and higher average room rates during FY14.
However, the segment results of RM34.4 million in FY14 was lower than RM91.5 million recorded in the 11 months ended Dec 31, 2013, mainly due to the group's decision to redevelop Pangkor Island Beach Resort Hotel, which is more than 30 years old, resulting in a write off of the hotel property, as well as property, plants and equipment of RM43.8 million during the current financial year.
"The board is cautiously optimistic that the better operational results seen in FY14 will carry through to 2015 and that the performance for the group for FY15 will be satisfactory although 2015 is expected to be a challenging year," it said.
The group expects the property investment and management segment to be more challenging in the short term, with an increase in the supply of new retail and office space in Kuala Lumpur. It also expects 2015 to be a tough year for the property development segment.