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KUALA LUMPUR: Niche property developer Magna Prima Bhd’s (MPB) net profit ballooned by a whopping 305% to RM4 million for its second quarter ended June 30 (2Q11) from RM988,000 a year ago, despite receiving lower revenue of RM27.4 million from RM30.7 million previously.
Despite the revenue decline in the current quarter, profit before tax (PBT) improved by 178% to RM6.2 million from RM2.2 million a year ago due to better margins from the One Sierra project and savings from other operating and administrative expenses, the company said in its results announcement yesterday.
Its PBT rose 149% to RM6.2 million from RM2.5 million in the immediate preceding quarter ended March 31, 2011, due to increased contribution from the One Sierra project.
According to the company’s announcement to Bursa Malaysia, for the six months ended June 30, revenue rose 11% year-on-year to RM54.2 million. It attributed the higher revenue to the One Sierra project in Selayang and U1 development in Shah Alam.
For the current financial year, One Sierra is expected to be the main contributor to the group’s financial performance as the U1 project in Shah Alam nears its completion in the first half of the year, MPB said in the announcement.
This will be followed by the Boulevard Business Park along Jalan Kuching, Alam D’16 project in Shah Alam and the newly launched Seri Jalil project in Bukit Jalil, to boost the company’s performance in the second half of 2011, it said.
On June 13, the company’s wholly owned subsidiary Crossborder Team Sdn Bhd received a notice from the Selangor land office informing that its entire D’Sierra Anggun project in Selayang had been gazetted for compulsory acquisition. The company has since halted the project and is currently in the process of compiling documentation for submitting its claims to the state’s land assessor.
Pending further clarification and conclusive information from the state’s land valuers and authorities, MPB said it is not able to make any estimate at this point in time regarding the extent of compensation from the state authorities.
