Bina Darulaman slips into the red in Q4

PETALING JAYA: Bina Darulaman Bhd (BDB) swung to the red registering a net loss of RM10.4 million for the fourth quarter ended Dec 31, 2017 versus a net profit of RM23.3 million in the previous corresponding period, due to lower contribution from property road building and quarry divisions.
Revenue for the quarter plunged 64.5% from RM153.9 million to RM54.7 million.
In a statement, the group attributed its weaker financial performance to lesser billings and delayed launches, but said it was optimistic and confident of better prospects for the coming financial year with a strong cash reserve of RM 119.8 million and total assets of RM802 million.
Its managing director Datuk Izham Yusoff noted that the group's property development segment recorded a fall of 62% compared to FY2016 mainly due to lower progress billings.
He said the drop in revenue is also a result of continued stringent housing loan application rulings which limited customers' access to funding and caused them having to cancel their bookings.
"Many of those who went on to purchase had to make compromises by switching from earlier preferred products priced at more than RM400,000 to more affordably-priced products to facilitate successful funding application," he added.
Izham however said the group is now focused on strategizing for the long term and confident that earnings are poised to pick up in the next financial year.
Notwithstanding the challenging business environment, he said BDB is confident to ride through this period given its current land bank worth RM344.4 million, stable financial position and low gearing of 0.27 times.
"Our optimism for 2018 is driven by the fact that we will have a better balance in supply of more affordably-priced properties to meet demand for the same. Approximately 75% of products that we plan to roll out in 2018 are priced up to RM400,000, making it easier for customers to have access to their expected loan margins," he added.
Meanwhile, BDB said its leisure division is expected to register improved performance in the near term after the opening of the theme park.
Other potential businesses have been identified to cater for a greater contribution to revenue and profits, it added.
For the full year, BDB posted a net loss of RM7.8 million, against a net profit of RM34 million in 2016, with revenue falling 29.4% from RM356.6 million to RM251.7 million.