Strong sales for S P Setia

Developer achieves Rm3.82bil in FY20 despite pandemic

PETALING JAYA: S P Setia Bhd surpassed its sales target of Rm3.8bil by achieving a commendable total sales of Rm3.82bil for its financial year ended Dec 31, 2020, amidst the Covid-19 pandemic.

Against the backdrop of this noteworthy accomplishment and complemented by a revenue of Rm3.23bil achieved by the property developer, impairment provisions of Rm475.9mil made in the second and third quarters of 2020 nevertheless resulted in the group registering a pre-tax loss of Rm156.7mil for the year in review.

The provisions, largely for the impairment of the work in progress and inventories under construction of £62.4mil (Rm336.3mil) arising from the group’s 40%-owned joint-venture company Battersea Project Holding Company Ltd in the third quarter of 2020, were made as a prudent measure and had no impact on the group’s cash flow position.

“Excluding these impairment provisions, the group would have a pre-tax profit of Rm319.2mil for the year in review,” said S P Setia in a statement.

In respect of the Islamic Redeemable Convertible Preference Shares A and Islamic Redeemable Convertible Preference Shares B, the company declared a preferential dividend of 6.49% per annum and 5.93% per annum, respectively, for the financial period from July 1, 2020 to Dec 31, 2020.

In the same statement, SP Setia president and chief executive officer Datuk Khor Chap Jen said the group recorded a significant surge of Rm1.56bil in sales in the final quarter of 2020 against the backdrop of a resurgence in Covid19 cases and subsequent re-implementation of the movement control order.

He added that S P Setia has secured Rm1.45bil worth of bookings in the pipeline.

“We continue to see genuine buyers who are still looking to own properties and to invest at this time to take advantage of the many promotions and offerings made available,” he said.