• Embassy Gardens, which brought in RM166 million sales, was the biggest contributor, followed by Wardian (RM153 million) and Millbrook Park (RM41 million).

KUALA LUMPUR (June 19): EcoWorld International has achieved RM433 million sales exchanges plus reserves of RM85 million adding up to a total of RM518 million in seven months of FY2024.

Embassy Gardens, which brought in RM166 million sales, was the biggest contributor, followed by Wardian (RM153 million) and Millbrook Park (RM41 million), the company stated in a media release.

Including the net cash balances at joint ventures, the group has a total cash balance of RM349 million as at 30 April 2024.

Premised on the healthy cash position, the board has declared a 1st interim dividend of six sen per share for FY2024, which translates to RM144 million.

However, EcoWorld International recorded loss before tax of RM13.9 million in 2Q2024 compared to loss before tax of RM2.1 million in 2Q2023.

This was mainly due to lower gross profit as the stocks in the Australian projects are largely fully sold; impairment loss on amount owing by EcoWorld London as the joint venture continues to invest resources to procure better planning consents for its remaining projects;lower foreign exchange gains from appreciation of British Pound (GBP) against Ringgit Malaysia (RM) on conversion of GBP denominated bank balances in 2Q2024 compared to 2Q2023.

“Construction costs in the UK have continued to climb despite softening of home prices in the recent months. Given the uncertainties related to policy direction as the UK heads to a general election in July 2024 and market expectations of rate cuts in the later part of 2024, homebuyers will take longer time to transact as they wait for policy clarity and lower mortgage rates.

“As such, the current environment remains unconducive for the Group to undertake launches in the near term,” said president & CEO Datuk Teow Leong Seng.

Teow said while the current environment is challenging, the UK real estate market nonetheless presents opportunities in the longer term, judging from the strong rental rates in London.

“The group will proceed with launches when cost pressures stabilise and the expected returns of undertaking such launches can be forecast with greater certainty.”

He added that sales are on track and “we have reduced the value of unsold completed stocks to about RM400 million of which the group’s effective share is approximately RM300 million. The board is maintaining our target of generating excess cash of up to RM500 million by selling our completed stocks”.

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