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Crest Builder narrows net loss to RM4m in 2Q

KUALA LUMPUR (Sept 22): Crest Builder Holdings Bhd has narrowed its net loss to RM3.76 million for the second quarter ended June 30, 2021 (2QFY21), from RM14.59 million a year ago.

For the quarter, revenue increased by 60.19% to RM90.06 million from RM56.22 million in the previous year. 

The group saw its construction division recording revenue of RM76.5 million and a loss before tax of RM5.3 million for 2QFY21. This was an improvement compared to the RM43.4 million revenue and loss before tax of RM15.9 million a year ago. 

Crest Builder attributed the increase in revenue to the higher progress in construction recognised for certain construction projects during the financial period under view. 

However, it said the movement control order had negatively impacted the segment’s operations. The improvement in loss before tax during 2QFY21 was a result of recognition of impairment losses on trade and other receivables amounting to RM6.9 million in the preceding year. 

As for its property development division, it also saw improvement in financial performance as it recorded RM400,000 revenue for 2QFY21 compared to zero revenue a year ago. This came as the group saw sale of completed properties during the period.  

Loss before tax was slightly wider at RM700,000 for 2QFY21 as compared to RM500,000 in 2QFY20. The higher loss before tax was a result of preliminary costs incurred for the Bukit Tinggi, Klang project, which is scheduled to be launched in the second half of 2021. 

Meanwhile, its concession arrangement division recorded revenue of RM11.5 million and profit before tax (PBT) of RM2.8 million for the quarter. It was marginally higher than the revenue of RM11.1 million and PBT of RM2.7 million it achieved a year ago. 

The group said the marginal increase came from additional work performed on UiTM Tapah which saw additional maintenance income through utilisation of maintenance sinking fund. 

Crest Builder’s investment division saw its revenue staying flat at RM1.7 million this quarter compared to the previous year while its loss before tax widened slightly to RM500,000 from RM200,000 previously. 

The increase in losses was attributed to the maintenance work performed on certain investment properties. 

For the first half ended June 30, 2021 (1HFY21), net loss narrowed to RM8.31 million from RM15.01 million, while revenue rose 46.41% to RM172.88 million from RM118.08 million.

Going forward, the group said it will continue to focus on strengthening its financial position and implementing cost optimisation measures. It is expecting some uncertainties in financial performance caused by Covid-19 and fluctuations in building material prices in the short term. 

“Notwithstanding these, the board is cautiously optimistic of the overall prospect of the group’s business and financial performance for 2021,” it said.

Crest Builder’s share price closed unchanged at 56.5 sen today, valuing the company at RM99.96 million. 

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