Vizione expects to see revenue growth of 5-10 pct in FY19

KUALA LUMPUR: Vizione Holdings Bhd expects to register revenue growth of between five and 10 per cent for the financial year ending May 31, 2019 (FY19) , following the acquisition of Wira Syukur (M) Sdn Bhd (WSSB) this year.

Group managing director, Datuk Ng Aun Hooi said the acquisition would boost the group’s revenue as WSSB had unconditionally guaranteed an aggregate post-tax profit contribution of RM82 million for the group.

“Our current order book balance stands at RM3 billion, while the tender book amounts to RM1.5 billion,” he told a press conference. after the company’s extraordinary general meeting (EGM) yesterday.

He said with the current ongoing works, the projects would improve the company’s total order book to RM3.6 billion.

On the EGM, Ng said the group’s shareholders had approved the proposed acquisition of the entire stake of WSSB for RM280 million.

“The exercise will be satisfied via a combination of cash and issuance of new ordinary shares of Vizione at an issue price of 11 sen per share,” he added.

WSSB had a construction order book of about RM3 billion as of March 24, 3017, and the projects would generate earnings for the next six financial years.

Moving forward, Ng said Vizione would continue to tender for more construction and housing projects, such as the People’s Housing Project (PPR).

“The high-end market is not easy to serve, so we are still targeting government projects and some private ventures on affordable housing across the country, except Sarawak,” he added.

On the company’s cash flow, he said Vizione’s current gearing stood at 0.06 times, but with more projects secured, the company might face a cash flow problem in the future.

“But we will look to the banking facilities available to help us out on the cash flow,” Ng said. — Bernama