Mutiara Goodyear posts RM8.89m net profit in 4Q

KUALA LUMPUR: Mutiara Goodyear Development Bhd posted net profit of RM8.89 million in the fourth quarter ended April 30, 2010 and expects the current financial year to be satisfactory due to improving outlook for the overall economy.

It said on Tuesday, June 29 that revenue was RM42.35 million. The company said the earnings and revenue was before the adoption of the Issues Committee (IC) Interpretation with the effective date starting from Feb 1, 2010.

"The group has taken the option of early adoption of IC Interpretation 15 Agreements for the construction of real estate as permissable by Malaysian Accounting Standards Board. As a result of the early adoption of IC Interpretation 15 the group recorded negative revenue for the current quarter under review due to deferment of revenue recognition from property development activities arising from changes from the percentage of completion method to the completed method," it said.

Hence, Mutiara Goodyear posted a loss after tax of RM5.5 million for 4Q. This was mainly due to the deferment of revenue recognition as a result of the adoption of IC Interpretation 15. There was no comparison made with the preceding quarter due to change of accounting policy during the current quarter.

The directors recommended a final single-tier tax exempt dividend of 3.5 sen per share for FY10.

Mutiara Goodyear said for FY ended April 30, 2010, revenue was RM52.61 million, of which property development accounted for RM47.77 million and property investment RM4.84 million.

Revenue declined 42.3% from RM91.29 million in FY09 of which property development accounted for RM85.84 million and property investment RM5.45 million.

Pre-tax profit was RM9.55 million, down 54.5% from RM21.03 million a year ago. This was because pre-tax profit from property development declined to RM4.34 million from RM23.04 million a year ago, despite the improvement in property investment.
Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.