Grand-Flo expects equal revenue from two divisions this year
PETALING JAYA: Grand-Flo Bhd, a tracking solutions provider and property developer expects equal revenue contribution from its two business divisions this year, driven by a healthy order book and unbilled sales.
Group president/group managing director Derrick Tan said as at May 29, unbilled sales for the property division stood at RM32 million, which would be recognised by year-end.
“The unbilled sales are from the group’s two completed projects in mainland Penang, namely the Vortex Business Park and The Glades, a landed residential property development,” he told reporters after the group’s annual general meeting yesterday.
Tan said that both projects are currently reporting a higher take-up rate as compared with last year due to the better economic landscape.
He also said despite the challenging circumstances in the overall property sector last year, the group managed to complete construction of the two projects and is on track for delivery in June and July this year.
The take- up for The Glades improved from 32 per cent at end2016 to 51 per cent now, while for the Vortex, it rose from 77 per cent to 86 per cent within the same time frame.
“We are optimistic that both projects would be fully sold in 2018 and will next venture into further developments at our existing locations (Penang and the Klang Valley),” Tan said.
He expressed hope that the group could build affordable houses for Malaysians and to enable this, would need to acquire more land from the current secured 1.62 hectares.
As for the group’s tracking solutions segment or enterprise data collection and collation system (EDCCS), it is eyeing a positive order book of RM20.4 million this year, while also tendering for additional contracts to the tune of RM21 million.
“Our tracking solutions segment is poised for steady revenue, backed by sustained orders from repeat customers including retail chains, the fast moving consumer goods sector and government- linked companies.
“The EDCCS segment is also the beneficiary of rising e-commerce adoption across the region, as we support the expansion of various logistics players,” Tan said. — Bernama