Salcon slips into the red in Q3 on unrealised forex losses

PETALING JAYA: Salcon Bhd has posted a net loss of RM755,000 in the third quarter ended Sep 30, 2016 (Q3FY16), from a net profit of RM3.51 million in the same period last year, attributed by unrealised losses on foreign exchange.

Revenue grew slightly by 1.8% to RM22.95 million, compared with RM22.54 million in the previous corresponding quarter.

For the nine-month period, its net profit fell 12.7% to RM10.5 million, from RM12 million a year ago, while revenue fell 8.1% to RM60.5 million, against RM65.8 million previously.

In a filing with Bursa Malaysia yesterday, the water and waste water engineering group said revenue in construction division for the quarter was lower by 4% compared with to the same period in the preceding year.

However, its property development division recorded a loss before tax of RM2.1 million, compared with a loss before tax of RM2.27 million for the same period in the preceding year due to lower operating expenses.

On prospects, the group said it is optimistic on its newly diversified e-commerce travel and tourism business, which is leveraging on the massive China outbound tourism market.

“The acquired subsidiary is appointed by Alitrip, a business unit within Alibaba Group as the sole operator of the Alitrip Malaysia Tourism Pavilion,” it added.