KUALA LUMPUR (Nov 18): Malton Bhd posted a 71.34% on-year decline in net profit in its first financial quarter ended Sept 30, 2015 (1QFY16) to RM4.33 million from RM15.11 million last year.

The lower earnings were attributable to higher initial overheads for new projects to be launched and recognition of higher profits arising from the disposal of certain parcels of land in the previous corresponding quarter.

Malton's revenue, however, came in 10.3% higher at RM123.08 million from RM111.59 million a year earlier, driven by its construction and project management division.

No dividend was declared for the current quarter under review.

On prospects, Malton said its ongoing development projects and other construction contracts in hand will contribute positively to its earnings for the financial year ending June 30, 2016 (FY16).

Malton is currently undertaking the development of Bukit Jalil City Signature Shops and The Park Sky Residence in Bukit Jalil, Kuala Lumpur, and the SK One Residence in Seri Kembangan, Selangor.

Aside from that, its ongoing construction contracts in hand include the Damansara Town Centre and Royale Pavilion Hotel projects, which it expects to contribute positively in FY16.

"Barring unforeseen circumstances, the board of directors envisages the group to achieve satisfactory results for FY16," it said.

Shares in Malton inched up 0.5 sen or 0.62% to close at 81 sen today, for a market capitalisation of RM360.98 million. -- theedgemarkets.com

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