Paramount ends its financial year strongly with net profit of RM148.2 million

KUALA LUMPUR: Paramount Corp Bhd closed its financial year ended December 31, 2010 (FYE 2010) strongly with a net profit of RM148.2 million, which was substantially higher compared to the RM57.53 million net profit posted a year ago.

The company posted revenue of RM102.9 million for its fourth quarter, compared to the RM104.5 posted a year ago.

The increase in net profit  was attributed to a gain of RM60.8 million recognised on the disposal of the company’s 20% equity in Jerneh Insurance Bhd and higher margins achieved in property development, it said on Thursday, Feb 24 in a Bursa announcement.

Meanwhile, its revenue grew to RM432.3 million from RM404.9 million recorded in the previous year.

Discounting the gain from the disposal of Jerneh Insurance Bhd, the company’s core business of property development, construction and educational services contributed to 47% of its growth in profits.

Malaysia’s healthy economic condition and the various initiatives to be implemented will continue to provide the positive sentiments beneficial for the Group’s core businesses of property development and provision of educational services, it said.

The company will continue to launch properties suitably designed and priced for its location, taking into account market conditions. Meanwhile, lock-in sales from strong sales momentum seen throughout 2010, will allow the Group to continue with steady progressive billings.

It also expects the performance of its educational services division to be maintained in 201. The conversion of the College to University-College and the expansion to international school in the educational services division will provide the platform for growth sustainability

It has proposed final dividend of 20 sen per share less 25% tax for FYE 2010. The dividend is payable on June 22, 2011.

The company is optimistic that the current financial year’s performance will be comparable to that of 2010 excluding the gains from the disposal of Jerneh Insurance.

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