Damansara Realty to post FY17 operating profit — CEO

KUALA LUMPUR (July 12): Loss-making Damansara Realty Bhd expects to record operating profit in the current financial year ending Dec 31, 2017 (FY17), as the company embarks on its strategic restructuring plan (SRP).

Group chief executive officer Brian Iskandar Zulkarim said the plan sought to help Damansara Realty achieve corporate recovery, with an early return to profitability.

The company's businesses include property development and integrated facililties management (IFM).

"The directors believe that the initial SRP actions have and will continue to accelerate corporate recovery. Accordingly, barring unforeseen circumstances, the group expects to accelerate the second stage of SRP through the second half of FY2017 and whole FY2018.  

"In the absence of major write-offs and exceptional items, the group expects to record an operating profit for the whole FY2017," Brian Iskandar said in a statement to Bursa Malaysia today.

He said Damansara Realty's 2HFY17 financial performance would be significantly better than 1HFY16, due to the SRP initiatives. 

He said the SRP aimed to restructure and integrate the company's non-property operations as the preferred IFM solutions provider and expand project management and consultancy services to support the group’s property development projects.

He said the SRP also planned to "streamline and accelerate the group’s property portfolio to revive or start new projects which have clear visibility to improve margins, cash flow and bottom line performance.

"Improve corporate governance, elevate the group’s corporate profile and seek capital market options, with a view to enhance shareholders’ value."

Damansara Realty's financials have improved. According to the company's income statements, 1QFY17 net loss narrowed to RM1.34 million, from a net loss of RM3.86 million a year earlier.
 
For FY16, the group reported a wider net loss at RM27.12 million, versus a net loss of RM4.38 million a year earlier. — theedgemarkets.com

For more stories, download TheEdgeProperty.com pullout here for free.