George Kent's 2Q net profit soars 142%, announces 3 sen dividend

KUALA LUMPUR (Sept 27): George Kent (M) Bhd’s net profit soared 142% to RM20.51 million or 5.5 sen per share for the second quarter ended July 31, 2016 (2QFY17), from RM8.47 million or 2.3 sen per share a year earlier.

Revenue jumped 44% to RM164.77 million, from RM114.66 million, the group said in a statement today.

It declared an interim single-tier dividend of 3 sen per share for the year.

George Kent said the jump in earnings was mainly contributed by higher contributions from its engineering and metering divisions.

The engineering division recorded a 120% increase in profit, driven by steady progress of ongoing construction projects, while the metering division saw a 24% improvement in profit, due to higher sales.

For the first half of the financial year (1HFY17), net profit almost doubled to RM35.52 million, from RM18.34 million; while revenue rose 66% to RM287.73 million, from RM173.69 million.

George Kent chairman Tan Sri Tan Kay Hock said the group is on track for another record yearly performance for FY17.

“We had once again delivered record first half results. Given this set of impressive results, we are on course for yet another bumper year. We will continue to work hard to deliver the projects we have on hand, as we further strengthen our reputation as a specialist in rail construction and water metering solutions.

“We will continue to grow our order book. The strong order book in hand will continue to grow the group’s earnings, well into the future,” he said.

George Kent shares gained 2 sen or 0.8% to close at RM2.51 today, giving it a market capitalisation of RM942.54 million. — theedgemarkets.com

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