- In just three months, EcoWorld International’s net cash position has improved from RM172.5 million as at Oct 31, 2022 to RM 446.2 million as Jan 31, 2023, representing an increase of 159%.
- Its net cash is also expected to strengthen further in the coming quarters as funds at the UK joint ventures are repatriated.
KUALA LUMPUR (March 22): EcoWorld International achieved RM335 million sales plus reserves of RM189 million, totalling RM524 million in the first four months of FY2023. This places it on track to achieve the full year sales target of RM1.4 billion, the company announced in a media release today.
The company said its focus on selling completed stocks has enabled significant cashflows to be generated. In just three months, EcoWorld International’s net cash position has improved from RM172.5 million as at Oct 31, 2022 to RM 446.2 million as Jan 31, 2023, representing an increase of 159%.
Its net cash is also expected to strengthen further in the coming quarters as funds at the UK joint ventures are repatriated.
“Accordingly, subject to achieving the sales target and receiving the relevant regulatory approvals, the board’s intention to distribute the RM900 million estimated excess cash to shareholders in the later part of 2023 is progressing as planned,” stated EcoWorld International.
The company however, recorded a loss before tax (LBT) of RM30.36 million in 1Q2023 versus a LBT of RM12.74 million in 1Q 2022, mainly due to foreign exchange losses of RM25.97 million in the current quarter. The forex losses arose from the weakening of the British pound against the ringgit.
Subsequent to 1Q2023, the British pound has appreciated. Should the British pound remain at current level or continue to strengthen against the ringgit, the foreign exchange losses recognised in 1Q2023 will be fully or partially reversed in later quarters.
“The group’s focus on selling our completed stocks is achieving the intended result of accelerating cash generation. Sales remain steady in the first four months of FY2023 with Embassy Gardens contributing RM125 million, followed by Wardian, London City Island and Oxbow bringing in RM67 million, RM63 million and RM33 million respectively,” said Datuk Teow Leong Seng, president and CEO of EcoWorld International about the latest results.
“Despite homebuyers becoming more cautious following increases in interest rates, shortage of homes continues to provide support for housing demand. We plan to sustain our sales momentum by offering attractive incentive packages to buyers and tapping overseas demand through international marketing events. This will enable significant additional cashflow to be generated for the group in the upcoming quarters,” explained Teow.
“In Australia, our development plan for the Macquarie Park site has received approval from the relevant authorities in February 2023. However, given elevated uncertainties in the current property market we are reviewing our options for the site,” he added.
The company also revealed that a “similar stand will be taken with regard to the group’s existing unlaunched projects in the UK”.
Feasibilities will be “carefully examined and stress tested and any launches will proceed only after cost pressures stabilise and expected returns that meet the group’s requirements can be forecast with greater certainty”.
“Our focus this year will continue to be the monetisation of stocks, cash preservation and generation in order to deliver the promised distribution of excess cash to shareholders which is proceeding in accordance to plan based on the sales and reservations that we have achieved to date,” Teow said.
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