KUALA LUMPUR (Nov 19): Property developer Bolton Bhd’s net profit for the second quarter ended Sept 30, 2012 rose 48.4% to RM12.43 million despite lower revenue and operating profit for the period as it saw greater contribution from associates and jointly-controlled entities.
Earnings attributed to equity holders for the three months ended Sept 30, 2012 was higher year-on-year as associate contributions jumped to RM3.11 million from RM671,000. The company also recorded a RM394,000 profit from ‘other investing activities’ compared to a RM5.94 million loss in the previous year’s corresponding quarter, its unaudited accounts on Bursa Malaysia’s website showed.
This happened even as second quarter revenue slipped 9.3% to RM91.44 million from RM100.81 million while operating profits fell 29.2% to RM14.81 million from RM20.92 million.
The property development division contributed 94% of the group’s results, notes to its accounts read.
Nonetheless, for the first half of the year, earnings rose 33.14% to RM21.58 million from RM16.21 million even as revenue increased 2.1% to RM166.57 million from RM163.16 million.
In addition, Bolton said the group’s unbilled sales stood at RM516 million as at 30 Sept this year and “is expected to contribute significantly to the earnings in the ensuing periods”.
Looking forward, Bolton said the property market is expected to remain cautious in the short term given the prevailing lending environment.
“However, the management is optimistic of achieving good performance for the financial year ending March 31, 2013, driven by its on-going developments in Klang Valley as well as the record unbilled sales of RM516 million. The revenue and profits from these future billings will be recognised over the coming years,” Bolton said, highlighting several upcoming property launches.
Meanwhile, Bolton said its 50% joint venture project with United Malayan Land Bhd -- at the corner of Jalan Yap Kwan Seng and Jalan Mayang in the Kuala Lumpur City Centre area known as Mayang Land project – is expected to be launched in the next financial year ending 2014 with an estimated Gross Development Value (GDV) of about RM1.8 billion.
The Mayang Land project with two blocks of 54 storey condominium, one block of 50 storey condominium and 10 units of 6 storey commercial building, received its development order in October this year from Dewan Bandaraya Kuala Lumpur and will be funded through a mix of internally generated funds and external borrowings.
At midday today, Bolton was unchanged at 80 sen, about 0.47 times its net assets per share of RM1.70 as at end-Sept 2012.
According to Bolton, the company had as at Sept 30 bought 14.93 million shares at an average of 81 sen apiece, which it retained as treasury shares.
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