Signature International eyes Battersea deals

PETALING JAYA: Signature International Bhd is banking on its close relationship with Sime Darby Bhd to secure kitchen and wardrobe contracts for the third phase of the Battersea power station redevelopment project in London.
“Our chances are very high, with the relationship we have and also the track record that we have (with) Sime Darby,” its group managing director Tan Kee Choong told reporters after the group’s EGM yesterday.
He added that the Malaysian developers for the London project are encouraging Malaysian companies’ participation.
Tan said the group previously failed to win the contract for the first phase and is now tendering for the third phase contract, which is estimated to be worth RM30 million.
“We came in quite late in the phase one. Second phase is a very small project and they didn’t invite us. So we bid for the third one.”
Tan noted that the third phase development would consist of over 500 residential units, which are scheduled for completion in 2019.
“So, for us to come in, maybe by 2018 or late 2017,” he added, noting its order book stood at RM150 million as of March this year and currently tendering for projects worth close to RM500 million, excluding the Battersea project.
Battersea power station is a 42-acre former industrial site that is being redeveloped over seven phases. Work officially began with phase one on July 4, 2013. The project comprises homes, shops, restaurants, offices, a public park and a new tube station.
Owned by S P Setia Bhd, Sime Darby and the Employees Provident Fund, the project has a total gross development value of £8.5 billion (RM47 billion).
Commenting on the group’s financial performance ended June 31, 2016 (FY16), Tan said the results would not be better than its FY15 results, due to the delays of revenue recognition, as well as slower replenishment of orders.
“However, we are very optimistic that we will do better in FY17,”he added.
For the second quarter ended Dec 31, 2015, the group’s net profit decreased 53.6% to RM5.65 million, from RM12.18 million in the previous corresponding quarter, while revenue down 22.7% to RM54.97 million, from RM71.07 million previously.

For the first six months period, its net profit declined 44% to RM10.54 million, against RM18.85 a year ago, while revenue went down 23.4% to RM99.84 million, from RM130.42 million previously.