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Zecon returns to profitability with RM39.7 mil net profit in FY20

KUALA LUMPUR (Sept 1): Zecon Bhd returned to profitability for the financial year ended June 30, 2020 (FY20), with a net profit of RM39.744 million against a net loss of RM20.97 million in FY19.

The property and construction firm also recorded a higher revenue of RM507.51 million compared to RM370.44 million previously.

For the fourth quarter, the Sarawak-based group also returned to the black, chalking up a net profit of RM2.6 million versus a net loss of RM5 million in the same corresponding quarter a year ago, while revenue for the quarter under review dipped to RM40.2 million from RM78.2 million previously.

“The gross profit recorded by the group during the quarter was mainly contributed by the Universiti Kebangsaan Malaysia (UKM) Specialist Children's Hospital and Pan Borneo Highway projects.

“In addition, the group's effort in carrying out rationalisation of operating expenses since the beginning of the current financial year paid off,” it said.

Moving forward, Zecon said it will still be registering revenue from its construction projects, particularly from both the Pan Borneo Highway and UKM Specialist Children's Hospital Kanak projects.

The Pan Borneo Highway project is progressing well even with the difficulties posted by the movement Control Order (MCO) and the extended Recovery MCO (RMCO).

The concession period for the Hospital Pakar Kanak-Kanak project is expected to commence operations by year-end.

"Besides, we are in the midst of finalising our corporate exercise of the proposed renounceable rights issue of up to 576 million new irredeemable convertible preference shares and employees' share option scheme.

“The proposed exercise is expected to be fully completed in October. The firm continues to rake in construction revenue from the Pan Borneo Highway (Phase One) project,” it said, adding that the board has not declared any interim dividend in the current quarter in respect of the financial period ended June 30, 2020.

 

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