BRDB profit before tax jumps 58% in FYE2009

KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB) saw an increase of 58% for its y-o-y profit before tax to RM155.8 million for FY2009, primarily due to increased profits in its property division. The division reported stronger development profits on the back of higher progress construction achieved during the year for its properties in Kuala Lumpur and from the sale of completed properties in Johor, as stated in its statement to Bursa Malaysia on Feb 22.

However, the group saw a y-o-y decrease in revenue of 10% to RM907.4 million for FYE Dec 31, 2009, due to a 50% drop in manufacturing revenue. Revenue for its property division improved 13% y-o-y due to the progress construction of One Menerung, Troika and CapSquare Office Tower 2 in Kuala Lumpur.

Group revenue in 4Q2009 fell 31% to RM204.5 million, with lower revenue from both the property and manufacturing divisions. While revenue derived from The Troika and Permas Jaya increased, it was offset by lower progress construction revenue recognised for One Menerung Phase 2.

Revenue in 4Q2008 was supported by cumulative progress recognition of CapSquare Office Tower 2 upon fulfillment of conditions precedent for its sale. In addition to that, revenue from the manufacturing division under Mieco Chipboard Bhd (MIECO) fell 28% to RM47.8 million from RM66.1 million a year ago due to lower selling prices and sales volume of particleboard and related products, though partially mitigated by favourable sales mix, the company said.

The financial performance of the Group in the current financial year will be dependant on the pace and sustainability of economic recovery. The property division is optimistic of maintaining a satisfactory performance in view of its still sizeable unbilled sales and planned new property launches in the Klang Valley and Johor.

BRDB also expects higher contribution from its investment properties now that the refurbishment of Bangsar Shopping Complex (BSC) is completed and the new 12-storey BRDB Office Tower and The Troika Commercial are also near completion, it stated.

In July last year, the developer’s wholly-owned subsidiary, BRDB (Oman) Ltd, entered into a Shareholders/Partners Agreement with mamas Loizou Ioanou Christodoulides and Mohammed Saleh bin Eid Al Khaldi (both of Oman nationality), and Amouage Hotels & Resorts LLC, Oman (Amouage) to undertake a proposed development of an integrated real estate tourism project on about 99 acres of land in Seeb, Sultanate of Oman through Amouage, the joint venture entity.