Southern Score wins RM618m contract to build two apartment blocks

• The contract was awarded by property developer Platinum Victory Development Sdn Bhd

KUALA LUMPUR (Feb 28): Southern Score Builders Bhd, formerly known as G Neptune Bhd, has won a contract amounting to RM618.24 million to construct two blocks of apartment suites in Setapak, Kuala Lumpur.

The contract was awarded by property developer Platinum Victory Development Sdn Bhd, said Southern Score in a bourse filing on Wednesday.

The group said the two 47-storey blocks will comprise 946 units and 1,136 units of apartment suites respectively. The project also includes 55 units of commercial space.

"The project is expected to contribute positively to the net assets and earnings per share of the company and its group of companies for the financial year ending June 30, 2024 onwards until the completion of the project," Southern Score said.

Group returns to black in 2Q

Separately, Southern Score reported that it had returned to the black with a net profit of RM6.62 million for its second financial quarter ended Dec 31, 2023 (2QFY2024) against a net loss of RM3.73 million in the previous year's corresponding quarter, mainly due to the absence of a one-off reverse acquisition expense of RM14.63 million which was incurred in 2QFY2023.

Quarterly revenue, however, went down by 34% to RM39.17 million from RM59.35 million, mainly due to lower revenue generated from the group's main construction services segment.

For the first half of FY2024, Southern Score recorded a net profit of RM11.37 million, compared with RM3.82 million in the previous July-December period, despite revenue coming down 38.6% to RM67.78 million from RM110.47 million.

Looking ahead, Southern Score executive director and chief executive officer Gan Yee Hin said the group remains on course to deliver the cumulative profit guarantee of RM80 million by the end of the calendar year. Notably, as at end FY2023, the group has achieved RM54.4 million out of the profit guarantee.

"Our outstanding order book stands at just above RM530 million, this is expected to underpin earnings growth as we continue to execute and deliver our existing construction projects," he said.

Southern Score shares closed up 1.5 sen, or 7.14%, at 22.5 sen on Wednesday, with a market capitalisation of RM511.33 million.

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