GDB reports 39.9 per cent jump in FY17 net profit to reach RM22.5 million

KUCHING: Construction services firm GDB Holdings Bhd (GDB) reported 39.9 per cent increase in net profit to a record high of RM22.5 million in the financial year ended December 31, 2017 (FY17) compared to RM16.1 million in the previous year, attributed to higher revenue and enhanced efficiency.

Group revenue rose 7.2 per cent to RM296.8 million in FY17 from RM276.9 million a year ago as GDB commenced work on two new projects, namely AIRA Residence in Damansara Heights and Menara Hap Seng 3 within the Kuala Lumpur City Center.

The group’s bottomline was also boosted by the completion of works ahead of contractual completion date for high-rise projects, which resulted in lower amounts incurred for preliminaries such as site management cost, utilities, machinery and equipment rental, and overhead expenses. Additionally, GDB incurred lower material costs for various completed projects as compared to the budgeted material costs.

“The group’s commendable performance in FY17 is the result of our expertise in delivering works ahead of schedule, whilst securing new high-value projects. We are pleased to reinforce our strong track record of growth since inception in 2013,” GDB managing director Cheah Ham Cheia said.

“With this, we will begin the new financial year on a strong footing, with order book exceeding RM850 million as at February 6, 2018. Additionally, we will continue to target more opportunities in the construction industry, and are currently pursuing various tenders for high-rise projects in the Klang Valley.”

As at February 6, 2018, GDB’s order book stood at RM854.9 million comprising projects such as Westside III in Desa ParkCity, Etiqa Office Tower along Jalan Bangsar, AIRA Residence in Damansara Heights, and Menara Hap Seng 3 within the Kuala Lumpur City Center.

For the fourth quarter ended December 31, 2017 (4Q17), group net profit stood at RM6 million, on revenue of RM88.5 million. There were no comparative figures for the previous quarter as this is the first interim financial report on the consolidated results announced by the group in compliance with the ACE Market Listing Requirements of Bursa Securities.