George Kent first-half net profit rises to RM46mil

Company says negotiations are ongoing to redesign LRT3 project

PETALING JAYA: George Kent (M) Bhd registered a 3.1% dip in net profit to RM24.6mil for the second quarter ended July 31, 2018, as compared to the corresponding quarter last year.

However, net profit for the first half of financial year ending Jan 31, 2019 was up 5.1% to RM46.1mil, which was commendable in spite of progress work being affected by the restructuring of the LRT3 project.

According to a press release yesterday, negotiations are ongoing to redesign the LRT3 project, and construction is anticipated to resume in the second half of 2019.

George Kent chairman Tan Sri Tan Kay Hock said the group’s engineering and metering divisions have continued to perform amidst challenges in the operating environment.

“Going forward, the group will continue to implement its strategic plan to broaden its income base.

“This will include investment of resources, both human and financial, into growing its metering and other water related businesses and investments.

“Leveraging on the expertise cultivated through our participation as the rail systems specialist in past domestic MRT and LRT projects, we are also on the lookout for regional railway opportunities, whilst continuing to deliver on our existing order book,” he said.

The metering business contributes substantially to the group’s profit, and now exports to over 40 countries around the world.

George Kent’s order book, which currently stands at just over RM5bil, will continue to provide earnings visibility over the next few years. The group’s extensive network with global rail specialists stands it in good stead for projects that require international collaborations through joint ventures or other forms of strategic alliances.

George Kent has also declared an interim dividend of 2 sen per share for FY2019 (FY2018: 2.5 sen per share), payable on Nov 1.