Plenitude’s 4Q net profit falls 84.7%

KUALA LUMPUR (Aug 25): Property developer and hotel operator Plenitude Bhd saw its net profit fall 84.7% to RM16.26 million in the fourth quarter ended June 30, 2016 (4QFY16), from RM106.65 million in 4QFY15. The sharp fall was mainly because of a bargain purchase gain of RM92.2 million in the takeover of The Nomad Group Bhd in the previous corresponding quarter.

Revenue declined 32.6% to RM48.32 million from RM71.66 million.

For the full year, Plenitude’s net profit fell 70.2% to RM50.44 million from RM169.22 million in FY15, due to lower contribution from existing and completed property development projects.

Revenue fell 16.5% to RM220.15 million from RM263.66 million.

Plenitude said the property market is expected to experience slower growth amid economic uncertainties and cautious market sentiments. The hotel business is expected to remain challenging as well. Therefore, the company expects a challenging performance for FY17.

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This article first appeared in The Edge Financial Daily, on Aug 25, 2016. Subscribe to The Edge Financial Daily here.