Sale of Aloft KL lifts Ireka's 1Q net profit to RM27.98 mil

KUALA LUMPUR (Aug 29): Ireka Corp Bhd posted sharply higher net profit of RM27.98 million for the first financial quarter ended June 30, 2016 (1QFY17), boosted by the gain on the sale of Aloft KL Sentral Hotel by its UK-listed associate company Aseana Properties Ltd.

In contrast, Ireka incurred net loss of RM4.09 million in the previous corresponding quarter mainly due to the share of loss in Aseana.

In the financial result announcement to Bursa Malaysia today, Ireka noted that it has booked in share of profit of associate amounting to RM28.64 million in 1QFY17 compared with share of loss of RM3.7 million.

The company's quarterly revenue was down 4% to RM63.7 million against RM66.4 million a year ago. Earnings per share came in higher at 16.38 sen compared with loss per share of 2.39 sen in the previous corresponding quarter.

Ireka did not declare dividend for the quarter under review.

The construction division is the largest revenue contributor, generating RM60.66 million, down 4.9% from RM63.77 million a year ago. The division's pre-tax profit declined to RM980,000 from RM2.25 million in the previous corresponding quarter.

Ireka's share price closed at 52 sen at the end of the morning trading session, with market capitalisation of RM85.4 million. The stock has dropped 11.2% year to date. — theedgemarkets.com

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