Merge Housing leaps back to profit in 3Q

KUALA LUMPUR: Merge Housing Bhd posted a net profit of RM3.37 million in the third quarter ended February from a  net loss of RM8.21 million a year earlier, as revenue increased substantially due to extraordianary gains from a  land sale. Its bottom line was also helped by gains from the disposal of a subsidiary, and lower finance cost.

In a statement to the exchange on Thursday April 29, Merge Housing said revenue rose more than threefold to  RM35.75 million from RM10.92 million.

"The increase in turnover was due mainly to the sale of land and contribution from the ongoing commercial  development project, 1st Jelutong at Bukit Jelutong.                              
"The current quarter's profit was attributed mainly to the sale of land, extensive site progress, and the  effective control of cost and resources, which translated into higher progressive profits being recognised." the  developer said.

Cumulative nine-month net profit came to RM5.43 million against a net loss of RM20.59 million a year earlier as revenue more than doubled to RM84.87 million from RM33.79 million

In quarterly terms, net profit rose 75.5% from RM1.92 million in the preceding second quarter while revenue fell  4.8% to RM35.75 million from RM37.55 million.

Merge Housing said it would adopt cost-efficient measures and initiate innovative marketing strategy to boost  property sales to sustain earnings.

"Backed by the experienced management team and with a planned new project launch in a maturing location, the  board is confident that the group's performance will improve in the current financial year," the group said.