KUALA LUMPUR (Sept 24): Bina Puri Holdings Bhd said it is cautious on the performance of its core construction business for the remaining months of its financial year ending Dec 31, 2018 (FY18), following the slew of changes to projects after the 14th general election (GE14).

“After GE14, there has been a lot of cancellations of mega projects, and delays over [calls for] tender. There is a possibility [for our construction to remain in the red for the remainder of the year], if no new projects come on board," group executive director Datuk Matthew Tee Kai Woon told reporters after its extraordinary general meeting (EGM) here today.

According to Tee, the construction division contributes approximately 90% to group’s revenue.

For its financial period ended June 30, 2018, the segment was loss-making with a loss before tax of RM6.9 million, against a revenue of RM216.1 million. This is compared with the profit before tax of RM1 million and revenue of RM488.7 million registered in the corresponding period last year.

However, he said the group remains hopeful for an improving business environment hereafter, and will actively tender in projects, even after recent unsuccessful bids for the Affin Bank new headquarters and the Lendlease project at Tun Razak Exchange.

As of today, the group has a construction order book of RM1 billion and a tender book of nearly RM5 billion, mostly comprising of building works.

Bina Puri’s EGM today saw shareholders approve of its proposed private placement of up to 92.12 million shares, or 30% of its enlarged issued shares, to raise some RM21.88 million.

Of the total proceeds raised, about RM17.51 million will be used as working capital, RM3 million for repayment of bank borrowings, and the balance of RM675,000 are estimated expenses for its corporate exercise.

Tee said the corporate exercise was undertaken in preparation for any capital crunch possibly faced by the group, while it awaits calls for tender.

At noon break, shares of Bina Puri settled half a sen or 2.27% lower at 21.5 sen, valuing it at RM63.01 million. — theedgemarkets.com

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