Keladi Maju post higher profit in 4QFY11

KUALA LUMPUR: Keladi Maju Bhd reported a net profit of RM5.2 million in its fourth quarter (4Q) for the financial year ended Jan 31, 2011 — an increase of 131% compared to RM2.2 million in the same quarter a year ago due to better management of the development cost.

In a filling to Bursa Malaysia on Friday, Mar 25, the Kedah-based developer reported a revenue of RM9.6 million in 4QFY11 compared to RM14.4 million in the same period a year ago. Earning per share stood at 69 sen compared to 30 sen a year ago.

For the whole financial year ended Jan 31, 2011, the company posted a net profit RM16 million compared to RM13 million in the preceding year corresponding period. It recorded revenue of RM53 million for FY11, a drop of 9% compared to RM58 million recorded in FY10.

The company said that the decrease in revenue was due to the lower sale of completed properties and the sale of properties with lower average selling prices in the financial year under review compared to the previous year.

"The group sold more shophouses, bungalow land and semi-detached houses in previous year, whereas in the current year, the types of units sold comprised mainly low and medium cost houses which contributed lower revenue," it said the statement.

On future prospect, Keladi Maju is confident that it will continue to achieve positive results as the 2011 budget allows full loan for first time buyers for houses below RM220,000 and stamp duty exemption of 50% on instruments of transfer on a house not exceeding RM350,000.

"This augurs well for the group since most of our properties are priced in the range below RM220,000. Furthermore, the group has established a solid reputation among house purchasers for timely delivery of good quality houses," it said.

The company said that it would continue to launch more projects in tandem with the higher demand and anticipates that its main development activities would continue to contribute favorable results to the company.

Keladi Maju also proposed a first and final dividend of 15% per ordinary share of RM0.10 each less 25% amounting to RM8,530,987.50 for the financial year ended Jan 31, 2011 that is subject to its shareholders' approval at the forthcoming 25th Annual General Meeting.