KUALA LUMPUR (Feb 25): S P Setia Bhd has recorded sales of RM3.82 billion in the financial year ended Dec 31, 2020 (FY2020), surpassing the group’s target sales of RM3.8 billion.
In a media statement today, S P Setia said against the backdrop of this noteworthy accomplishment and complemented by a revenue of RM3.23 billion achieved by the group, impairment provisions of RM475.9 million made in the previous second and third quarters of FY2020 nevertheless resulted in the group registering a loss before tax of RM156.7 million for the year in review.
The provisions, largely for the impairment of the work in progress and inventories under construction of £62.4 million (RM336.3 million) arising from the Group’s 40% owned joint venture company, Battersea Project Holding Company Ltd, the United Kingdom (BPHC) in the third quarter FY2020, were made as a prudent measure and had no impact on the group’s cash flow position.
Excluding these impairment provisions, the Group would have a profit before tax of RM319.2 million for the year in review, said the statement.
S P Setia Bhd president and CEO Datuk Khor Chap Jen (pictured) said the group has recorded a significant surge of RM1.56 billion in sales and a substantial RM1.45 billion of bookings in the pipeline during the last quarter of FY2020 against the backdrop of a resurgence in Covid-19 cases and subsequent re-implementation of the movement control order (MCO).
Local projects contributed RM3.11 billion or approximately 81% of the sales while the remaining RM716.0 million or approximately 19% were contributed largely by international projects.
On the local front, sales were mainly from the Central region with RM2.28 billion, aided by RM312.0 million contribution from the Northern region while the Southern region contributed RM415.0 million.
“We managed to clear RM695 million of completed inventories in FY2020 and will continue to do so in FY2021. Riding on the upsurge in sales momentum during Q4FY2020, S P Setia will maintain its sales target of RM3.80 billion for FY2021. There are positive sentiments and optimism arising from the mass vaccination programme, which will be rolled out in stages globally and across Malaysia,” said Khor.
As of Dec 31, 2020, S P Setia has 48 on-going projects, with an effective remaining landbank of 8,528 acres valued at a gross development value of RM136.87 billion and total unbilled sales of RM10.05 billion which will sustain the Group over the next two years.
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