Glomac Q1 earnings fall

> However, gross margins improve and cash flow from operations turns positive

PETALING JAYA: Glomac Bhd saw its earnings drop 31.6% to RM1 million in the first quarter ended July 31 from RM1.47 million in the previous corresponding quarter on lower revenue.

Revenue declined 40.1% to RM57.6 million from RM96.2 million in the same period a year ago mainly due to the completion of certain phases of Saujana KLIA in the previous financial year and lower construction activities during the quarter.

Glomac said in a statement that its revenue for the period was mainly contributed by progress billings from Bandar Saujana Utama, Sri Saujana and Saujana KLIA.

However, the group said its gross profit margins during the quarter improved due to cost savings from completed projects and cash flow from operations turned positive.

Its balance sheet remained robust as net gearing improved to 0.28 times compared to 0.30 times as at end-FY18, while net assets per share remained unchanged at RM1.38, it added.

The group said it targets to step up the pace of new launches to capitalise on the improved consumer sentiment. However, it expects prospects for the property sector to remain challenging.

Launches in financial year 2019 totalling RM1 billion will remain in the mid-market and affordable segments, it added.

Glomac also said it has secured an international retailer for Glo Damansara Mall in Kuala Lumpur, which is expected to increase the shopping complex’s occupancy from 45% to 85%.