Gadang lands RM100m sub-contract under Central Spine Road project

KUALA LUMPUR (Sept 17): Gadang Holdings Bhd has secured a RM100.34 million sub-contract under the Central Spine Road (CSR) project.

In a stock exchange filing, the construction engineering group said the work includes demolition, site clearance, earthwork and the construction of an access bridge to Kuala Berang.

CSR is a 347km toll-free highway aimed at motorists travelling between Bentong in Pahang and Kelantan.

Gadang said the 30-month subcontract will be completed by the first quarter of 2024.

The group said the subcontract is expected to contribute positively to its earnings and net assets for the financial year ending May 31, 2022 and the remaining duration of the subcontract.

In July, Gadang announced a net profit of RM3.7 million for the fourth quarter ended May 31, 2021, compared with a net loss of RM259,000 a year earlier, driven by profit from its construction and utility divisions. Quarterly revenue rose 31.78% to RM152.33 million, from RM115.6 million.

For the full year, the group’s net profit plunged 71.1% to RM10.25 million from RM35.46 million for the previous year, with revenue slipping 14.61% to RM574.75 million from RM673.06 million

The group’s construction division’s outstanding order book stood at RM425 million as of the reporting date.

Shares of Gadang ended 1.33% or half a sen higher at 38 sen today, giving the group a market capitalisation of RM273.02 million.

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