UEM Edgenta Q1 earnings 8% higher

KUALA LUMPUR: Total asset solutions company UEM Edgenta Bhd’s net profit for the first quarter rose 8.3% to RM29.55 million from RM27.28 million a year ago, largely driven by growth in revenue and profitability across all its core sectors, namely healthcare, infrastructure and real estate.

Its Q1 FY18 revenue rose to RM460.79 million, which was 10.5% higher as compared to Q1 FY17’s RM417.06 million, mainly attributable to higher revenue from new contracts in the commercial healthcare services sector and additional work secured for highway maintenance services. Healthcare and Infrastructure sectors continue to be the major contributors for the group’s revenue.

Managing director and CEO Datuk Azmir Merican said its strategy of consolidating and strengthening core sectors have started to yield results as evidenced by improvements in both revenue growth as well as profit margins.

“We remain optimistic of our prospects in all the sectors we operate in, as well as our ability to maintain the growth momentum for the rest of 2018 based on our positive first quarter performance.”

“While we are focused on securing new businesses, all efforts are also underway to improve our operational and organisational excellence, with the use of technology and innovation enablers. This will help us to deliver better margins and profitability moving forward,” he said.

As at March 31, its gross gearing ratio stood at 0.39 times with borrowings of RM558.3 million. However, the company is in a net cash position of RM86.0 million after taking into account short-term investments of RM194.0 million and cash, bank balances and deposits of RM450.3 million.