GRAND FLO EXPECTS TURNAROUND THIS YEAR
Steady revenue from tracking solutions segment, pick-up in property division likely
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.