Advancecon 3Q18 revenue up eight per cent to RM65.8 million

KUALA LUMPUR: Earthworks and civil engineering services specialist Advancecon Holdings Berhad (Advancecon) recorded eight per cent higher revenue of RM65.8 million in the third quarter ended September 30, 2018 (3Q18) from RM60.9 million previously, driven by higher progress billings from its construction and support services segments.

Lim Swee Chai, deputy group chief executive officer of Advancecon said: “We delivered healthy revenue growth in 3Q18, as we maintained a steady pace in delivering works across our 14 ongoing projects nationwide. We expect to sustain this momentum by continuing to fulfil our sizeable current orderbook of RM876.3 million.

“Going forward, we strive to enhance our overall profitability by enlarging our revenue base and securing more projects that allow our resources to be utilised more efficiently. This in turn will lower our operational costs in the long run.”

The Group’s 3Q18 net profit dipped to RM1.5 million from RM3.3 million in the previous corresponding quarter. The weaker bottomline was a result of higher diesel prices and depreciation, lower other income, as well as increased finance costs for hire purchase of machinery.

Despite the unfavourable market conditions, Advancecon secured RM461.3 million worth of contracts in the financial year ending December 31, 2018 to date or 1.7 times of the audited revenue in FY2017, demonstrating the Group’s competitive edge and resilience in this challenging sector.

Lim also added that the Group is set to deliver positive financial results in the current financial year.