Bolton pre-tax profit up 316%

KUALA LUMPUR (Feb 28): Property developer Bolton Bhd achieved a profit before tax (PBT) of RM14.3 million for its third quarter (3Q) ended Dec 31, 2011, a 316% increase compared to the corresponding period of the previous financial year.

Revenue increased 55% to RM60.2 million compared to the corresponding period of FY2011.The perfomance in revenue and profit was due to the excellent take-up of 6 Ceylon in Kuala Lumpur; Arata in Bukit Tunku; Cascadia and Biz Walk in Taman Tasik Prima, Puchong; and Surin in Penang.

6 Ceylon is a 33-storey urban rejuvenation development comprising 215 high-end apartments, while Arata comprises 100 units of luxury condominiums in Bukit Tunku. Cascadia offers 162 units of 3-storey townhouses in Taman Tasik, while Bizwalk comprises 32 units of 3-storey showroom offices. BizWalk forms The Wharf's commercial development project in the township, while Surin — Bolton's flagship development in Penang — comprises 390 units of condominiums.

The group's unbilled sales — which is expected to contribute significantly to the its profitability in the following years — stood at RM517 million as at Dec 31, 2011.

The group's first nine months of FY2012  recorded RM223.4 million in revenue compared to RM155.7 million in the corresponding period of FY2011 as well as PBT of RM40 million compared to RM15.5 million in FY2011.

According to group executive chairman Datuk Azman Yahya, the continued strong performance of the group reflects the commanding position that Bolton has carved out amongst the local property developers. "Our push towards greater creativity and innovation in our products has greatly enhanced the Bolton brand so much that we are being courted by several landowners to carry out joint-venture developments with them," he said.

With the handing over of the keys to its purchasers of Surin Tower B — Bolton's maiden development in Penang — the company received excellent reviews by its purchasers, while Cascadia owners will receive their keys later next month, almost 17 months ahead of schedule.

Coupled with a net gearing ration of 0.11 times and a ready war chest of RM150 million in available funds, Bolton is well placed to pursue an aggressive expansion strategy and is considering several potential land acquisitions and joint venture development opportunities, apart from its existing projects, Azman said.

"We already have projects to be launched witha a total gross development value of RM1 billion in the next six months and RM3 billion within the next 12 months, which will propel us to the premium league of property developers in the country. However, we will remain cautious and mindful of market demand when timing our launches," he added.

The new projects to be launched this year are Tijani Ukay, 51G Kuala Lumpur, The Wharf and the last batch of landed properties in Taman Tasik Prima.

Tijani Ukay is located on a 23 acre site in Ukay Perdana, Hulu Kelang, with a GDV of RM323 million. It comprises 117 units of zero-lot bungalows, and nine units of bungalows.

Luxury condo 51G Kuala Lumpur has a GDV of RM207 million, and offers buyers a private carport in each of its 71 units, including a 26ft wide driveway on each floor which enables residents to drive up to their units.

Established in 1964, Bolton is one of the oldest and most established property developers in Malaysia, with developments that span seven states locally.