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Sime Darby Property records net loss of RM478.80m in FY20

KUALA LUMPUR (Feb 25): Sime Darby Property Bhd (SDP) has recorded a net loss of RM478.80 million for the financial year ended Dec 31, 2020 (FY20), as compared to a net profit of RM598.53 million recorded in FY19.

Revenue slipped to RM2.06 billion from RM3.18 billion previously, the group said in a filing with Bursa Malaysia today.

“The property development segment was adversely impacted by the share of impairment loss from Battersea Project Holding Co. Ltd and its subsidiaries -- a 40 per cent owned joint venture of the group -- in respect of the Battersea Power Station project in London,” it said.

In view of the challenges presented by the COVID-19 pandemic in London, and more specifically, its impact on the delivery of the Battersea Project, SDP said the Battersea Group had recognised an impairment of its work in progress and inventories under development during the preceding quarter.

“The group’s 40 per cent share of the said impairment recognised by the Battersea Group amounted to RM337.1 million (£62.4 million).

“The impairment reflects the impact of prolongation costs associated with the pandemic, notably the implementation of social distancing measures and the impact of the United Kingdom’s lockdown period on the delivery programme of the Battersea Project,” it said.

However, SDP noted that notwithstanding the impact of COVID-19 on the market, the Battersea Project has continued to maintain momentum with respect to both residential sales and commercial leasing.

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