EWI narrows Q2 losses to RM11.98m

KUALA LUMPUR: Eco World International Bhd (EWI) more than halved its losses for the second quarter ended April to RM11.98 million from RM26.46 million a year earlier.

EWI’s loss per share was 0.5 sen versus 1.1 sen previously.

The losses were mainly due to the completion method of earnings recognition adopted in the United Kingdom.

For the six-month period, EWI posted a net profit of RM10.78 million compared with a net loss RM36.63 million a year ago.

EWI president and chief executive officer Datuk Teow Leong Seng said the group was on track to record substantially higher profit.

He said his optimism was based on the targeted handover of several residential blocks in the next few months, mainly by London City Island and Embassy Gardens in the UK, which would see sales profit recognised in the upcoming quarters.

EWI recorded RM586 million sales in the first seven months of its financial year ending in October, a marked increase from sales of RM146 million achieved in the first four months.

“Our EcoWorld London venture, which offers products averaging from £500 (RM2,360) to £800 per square foot, contributed to more than half of sales. This shows the resilience of the midstream London market despite weak buyers’ sentiment and Brexit uncertainties,” said Teow.

In February, EcoWorld London launched Verdo residential blocks in Kew Bridge, which achieved a 43 per cent take-up. The good response led to the launch of Millbrook Park (Phase 2) last month to cater to wealthier house buyers who were willing to pay a premium to live in matured locale of Greater London.

As at April, EWI delivered 608 private housing units.

He said EcoWorld London was actively pursuing new build-torent (BtR) opportunities to tap the growing institutional demand for purpose-built BtR developments.

“There’s ongoing discussion with a partner. We hope to finalise it soon,” said Teow.