MRCB’s net profit increases 68.42% in 4Q10

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) recorded a higher net profit of RM12.412 million in its fourth quarter ended Dec 31, 2009, up 68.42% from a net loss of RM39.298 million recorded in the same quarter last year.

Revenue increased to RM281.669 million in the quarter, up 38.38% from RM203.54 million in the same period last year.

The group recorded a pre-tax profit of RM23.365 million for the fourth quarter, up 8.37% from a pre-tax loss of RM25.499 million recorded in the same period last year.

In a filing to Bursa Malaysia on Feb 23, MRCB said the increase was mainly due to the realisation of improved profit margins from the completion of existing projects, especially within KL Sentral, and higher progressive recognition of profit from the group’s ongoing development and construction activities.

Losses in the preceding corresponding fourth quarter ended Dec 31, 2008 was mainly due to provisions for remedial works and write downs of the group’s property development landbank and slow moving property inventories.

The Group recorded revenue of RM921.6 million for the current financial year ended Dec 31, 2009 as compared with RM788.5 million recorded in the preceding financial year ended Dec 31, 2008.

Accordingly, the Group achieved a profit before taxation of RM46.5 million for the current financial year, compared with a loss of RM42.2 million recorded in the preceding financial year.

“2010 will see the Group recognising a full year works of its massive ongoing construction projects and property development of more than six million square feet of hotel, retail and office space within Kuala Lumpur Sentral,” MRCB said.

It added that MRCB Land would continue to drive the Group’s forefront position of sustainable development with its new ongoing iconic buildings in Kuala Lumpur Sentral such as the Shell headquarters at 348 Sentral, Nu Sentral mall and KL Sentral Park, which are all being developed under the certification of Malaysia’s Green Building Index, LEEDS and BCA Greenmark.

“Barring any unforeseen circumstances, the board is confident the Group will record growth in revenue and profitability for 2010,” it noted.

Proceeds from its Rights Issue will provide the Group with the requisite funding to acquire investments in the form of long-term assets and strategic new landbank for development to provide a sustainable growth in its core businesses in the near future.

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