Steady rev­enue from track­ing so­lu­tions seg­ment, pick-up in prop­erty di­vi­sion likely

New Straits Times - - Business - AMIR HISYAM RASID


TRACK­ING so­lu­tions provider Grand Flo Bhd ex­pects to turn around in the 2017 fi­nan­cial year, boosted by its prop­erty devel­op­ment projects.

Its track­ing so­lu­tions seg­ment is poised for steady rev­enue ev­ery year, while its prop­erty di­vi­sion is set to pick up and be­come a key driver of earn­ings growth.

Group pres­i­dent and man­ag­ing direc­tor Der­rick Tan said the prop­erty devel­op­ment seg­ment was ready to con­trib­ute pos­i­tively and help turn around the group’s busi­ness this year.

He said the take-up of the com- pany’s two flag­ship projects in Pe­nang — the Vor­tex Busi­ness Park and a landed res­i­den­tial devel­op­ment called the Glades — had im­proved.

“Our un­billed sales for the prop­erty di­vi­sion stood at RM32 mil­lion as at Mon­day.

“Based on the pos­i­tive sales up­trend of our projects, and with the in­creas­ing devel­op­ment in Pe­nang, we are op­ti­mistic that our projects will be fully sold next year,” he said at Grand Flo’s an­nual gen­eral meet­ing, here, yes­ter­day.

Last year, the com­pany reg­is­tered a net loss of RM9 mil­lion for the year ended De­cem­ber, mainly due to lower rev­enue from the prop­erty di­vi­sion. This was de- spite a sta­ble rev­enue from its track­ing so­lu­tions seg­ment.

The com­pany is ex­pected to launch the sec­ond phase of its prop­erty busi­ness this year to keep the sales mo­men­tum go­ing.

“We are plan­ning to ven­ture fur­ther into Pe­nang and the Klang Val­ley,” added Tan.

On the track­ing so­lu­tions seg­ment, Tan ex­pects rev­enue to be main­tained on the back of sus­tained or­ders from re­peat cus­tomers, in­clud­ing in­ter­na­tional hy­per­mar­kets, fast-mov­ing con­sumer goods com­pa­nies and lo­gis­tics com­pa­nies.

Its out­stand­ing or­der book is at RM20.4 mil­lion and the com­pany will be ten­der­ing for an ad­di­tional RM21 mil­lion con­tracts.

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