GDB posts 39.9% jump in FY17 net profit

PETALING JAYA: Construction services firm GDB Holdings Bhd, which is scheduled to be listed on the ACE Market of Bursa Malaysia Securities Bhd next Tuesday, posted a net profit of RM5.95 million and revenue of RM88.47 million for the fourth quarter ended Dec 31, 2017.
There were no comparative figures for the previous quarter as this is the first interim financial report on the consolidated results announced by the group in compliance with the ACE Market Listing Requirements.
For the financial year ended Dec 31, 2017 (FY17), it reported a 39.9% increase in net profit to RM22.5 million compared with RM16.1 million in the previous year, attributed to higher revenue and enhanced efficiency.
Group revenue rose 7.2% to RM296.81 million in FY17 from RM276.91 million a year ago as GDB commenced work on two new projects, namely AIRA Residence in Damansara Heights and Menara Hap Seng 3 within the Kuala Lumpur City Center.
The group's bottomline was also boosted by the completion of works ahead of contractual completion date for high-rise projects, which resulted in lower amounts incurred for preliminaries such as site management cost, utilities, machinery and equipment rental, and overhead expenses.
Additionally, GDB incurred lower material costs for various completed projects as compared to the budgeted material costs.
GDB managing director Cheah Ham Cheia said the group's commendable performance in FY17 is the result of its expertise in delivering works ahead of schedule, whilst securing new high-value projects.
"With this, we will begin the new financial year on a strong footing, with order book exceeding RM850 million as at Feb 6, 2018. Additionally, we will continue to target more opportunities in the construction industry, and are currently pursuing various tenders for high-rise projects in the Klang Valley," Cheah said in a statement.
As at Feb 6, 2018, GDB's order book stood at RM854.9 million comprising projects such as Westside III in Desa ParkCity, Etiqa Office Tower along Jalan Bangsar, AIRA Residence in Damansara Heights, and Menara Hap Seng 3 within the Kuala Lumpur City Center.
The group's initial public offering saw its public tranche oversubscribed by 43.0 times at an issue price of 35 sen per share.