Glomac 4Q net profit jumps, earnings to improve further

KUALA LUMPUR: Glomac Bhd's fourth quarter earnings surged 80% to RM12.45 million and the property developer expects its financials to improve, helped by the company's locked in real estate sales, upcoming property launches, and landbank expansion.

Glomac group executive Chairman, Tan Sri F.D. Mansor said on Tuesday, June 29 that unbilled sales of RM588 million as at end-April 2010 was a new record high for Glomac.

"Together with a healthy balance sheet and a pipeline of prime projects we are targeting to launch over the next two years, the group is well poised for significant growth." F.D. Mansor said.

Unbilled real estate sales refer to the value of properties sold which have yet to be recognised in a developer's books yet.

Glomac which sold RM508 million worth properties in FY2010 has a pipeline of projects worth RM1.8 billion to be launched over the next two financial years, he said.

In the fourth quarter ended April 30, 2010, earnings rose 80% to RM12.45 million from RM6.93 million. Revenue rose 11.6% to RM104.46 million from RM93.58 million. Earnings per share were 4.23 sen versys 2.48 sen.

The developer had declared a dividend of 4.5 sen a share during the fourth quarter, which results in a full year dividend payout of 8.5 sen a share, up from the previous year's seven sen a share dividend.

For the financial year ended April 30, 2010, net profit rose 27.4% to RM40.75 million or 13.92 sen a share from RM31.98 million or
11.4 sen a share in FY09. Profit before tax rose 32.2 % to RM74.37 million from RM56.24 million during the year. However, revenue fell 7.9% % to RM317.85 million from RM345.27 million.

Shares of Glomac fell four sen to RM1.26 yesterday for a year to date decline of 6.7%, underperforming the FBM KLCI's 3.7% gain. Glomac's net assets per share stood at RM1.88 as at April this year.