Ho Hup closes financial year with net loss of RM13.08 million

KUALA LUMPUR: Ho Hup Construction Company Bhd closed its financial year ended Dec 31, 2010 (FYE 2010) with revenue of RM65.74 million and net loss of RM13.08 million.

This represented a decline from the RM80.14 million revenue and RM34.51 million net profit posted a year ago, it said on Friday, Feb 25 in a Bursa announcement.

The decreased profits was mainly attributed to further provision made during the quarter for doubtful recoverability of sundry deposits and additional cost resulting from the S176 exercise.

For its fourth quarter, it recorded revenue of RM10.08 million and net loss of RM5.03 million.

Its construction division registered a net loss of RM10.5 million on the back of RM26.5 million revenue, while its property development division recorded a net profit of RM300,000 and revenue of RM32.9 million.

Meanwhile, its ready mixed concrete division recorded a turnover of RM13.1 million and net profit of RM300,000.

The acquisition of Fivestar Development (Puchong) Sdn Bhd and Kolektra Recreation Sdn Bhd last year is expected to ensure sustainable business for the company in the long term.

The development of 20 units of 2 ½ storey semi detached units under phase 7B in Jalil Sutera has progressed to 65% and it is expected to obtain Certificate of Fitnesss by second quarter of 2011.

Apart from these, it also expects to record gains from the disposal of the final piece of the non core landbank in third quarter of 2011.

Lastly, the ready mixed concrete division has been restructured and is expected to show a turnaround in first quarter of 2011.

No dividend was declared for the financial period under review.