PETALING JAYA: George Kent (Malaysia) Bhd’s net profit slumped 55% to RM11.05 million for the second quarter ended July 31, 2019 from RM24.58 million in the same quarter of the previous year, due to lower contribution from the engineering division.
Revenue for the period saw a 13.5% decline to RM97.72 million from RM112.93 million previously.
The group has proposed to declare an interim dividend of 1.5 sen per share for the quarter under review, payable on Oct 31, 2019.
According to the group’s filing with Bursa Malaysia, its engineering segment’s profit dropped 41% to RM17.03 million for the quarter compared with RM28.96 million previously, mainly attributed to lower revenue.
Its metering segment saw profit of RM4.33 million for the period, a 33% decrease from RM6.5 million on the back of lower sales and gross profit margin.
George Kent’s six-month net profit sank 46.7% to RM24.56 million from RM46.12 million in the same period a year ago, with revenue falling 15.1% to RM180.5 million from RM212.7 million.
Commenting on future prospects, the group said the results are expected to improve in the second half of the financial year as export orders that were anticipated for the first half of the year are realised.
“Our smart metering solution is undergoing proof-of-concepts and pilot tests in various states. This will pave the way for the commercialisation of this solution, which will be a key growth driver in the coming years,” noted George Kent chairman Tan Sri Tan Kay Hock.
He said that these are part of the step takens to expand the metering business contribution to 50% or more of the George Kent’s earnings, in line with the group’s long-term plan to broaden its income base.
Meanwhile, Tan highlighted that its expertise and experience as a rail systems integrator place the group in a favourable position to compete for domestic rail projects.
“Similarly, with the successful completion of over 30 water infrastructure projects in the last 26 years, the group is well-positioned to explore opportunities arising from the Malaysian government’s drive to resolve the country’s non-revenue water issue.”
