OSK Property’s after tax profits for FY2009 drops despite revenue rise

KUALA LUMPUR: Mainboard-listed property developer OSK Property Holdings Bhd saw its full financial year profits after tax dropping to RM5.06 million from RM8.31 million a year earlier. The reduced profits were on the back of increased revenue to RM125.85 million from RM106.66 million in its previous financial year ending Dec 31, 2008.

Basic earnings per share for the year dropped to 2.7 sen from 4.25 sen.

Meanwhile, its fourth quarter profits after tax also dropped to RM1.23 million from RM2.02 million in the same quarter a year ago. Profits reduced on the back of increased revenue to RM39.9 million from RM28.29 million in the same quarter a year earlier. Basic fourth quarter earnings per share almost halved to 0.66 sen from 1.05 sen in the same quarter of the financial year 2008.

The company said in a statement to Bursa Malaysia on Feb 23 that the drop in profits after tax is due to the effective tax rate which is higher than the statutory tax rate of 25%, mainly due to non-deductible expenses for tax purposes.

The increase in fourth quarter revenue and pre-tax profits was mainly due to higher sales and profits from the Bandar Puteri Jaya and Sutera Damansara projects as certain phases achieved advance stages of completion, OSK Property said.

Meanwhile, the increase in yearly sales and pre-tax profits compared with the previous year was mainly due to the Sutera Damansara project.

It is declaring a final dividend of 2.5 sen per share less 25% income tax for the year ended Dec 31, 2009.