Ireka in the black, RM7.5m net profit

KUALA LUMPUR: Ireka Corporation Bhd was in the black in the first quarter ended June 30, 2011, with earnings of RM7.45 million compared with a net loss of RM3.26 million a year, lifted by contribution from its associate, Aseana Properties Ltd.

It said on Friday, Aug 26 that revenue dipped 2.6% to RM99.03 million from RM101.71 million a year ago due to lower volume of construction work completed during the period.  Earnings per share were 6.54 sen compared with loss per share of 2.87 sen.

Ireka said the better performance in the just ended quarter was also boosted by a share of profit in Aseana Properties, a 23.02% associate which reported profit of RM7 million compared a a loss of RM6.53 million a year ago.

There was also a mark-to-market loss for share investment in Kinh Bac City Development Shareholding Corporation of RM1.64 million compared with only RM595,000 a year ago. The results were also affected by lower construction margins during this period.

On the prospects, it said based on existing works on hand, Ireka expected its turnover to be maintained in the current financial year.

“As at end July 2011, the group’s order book stood at about RM1.22 billion, of which RM414 million remained outstanding. Over the 12 months, the group tendered for jobs totaling over RM1 billion ahd had successfully secured three projects with total contract sum of about RM400 million,” it said.

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