Seloga 4Q net profit up 296%

KUALA LUMPUR: Seloga Holdings Bhd reported a net profit of RM5.9 million for the fourth quarter (4Q) of its financial year ended Dec 31, 2010, an increase of 296% from RM1.49 million in the same quarter a year ago, due to the sales of the company's developmental rights over a parcel of land under the joint-venture agreement with UEM Land Bhd.

In a filing to Bursa Malaysia on Monday, Feb 7, the company posted revenue of RM13.8 million, an increase of 13% from RM12.2 million in the preceding year's corresponding quarter. Earnings per share stood at 4.97 sen, compared to 1.27 sen a year ago.

Meanwhile, for the whole year under review, net profit was at RM13.41 million compared to RM13.47 million for the financial year ended 2009. Revenue dropped to RM46.7 million from RM61.9 million in FY2009.

"The decrease of 24.4% was mainly attribute to lower progress billings being recorded due to the cancellation of sales of 134 units by the state governments of Johor where prospective total revenue of approximately RM11.2 million was lost," the company said to Bursa.

The company added that subsequently all the 134 units were resold at a higher price of RM138,000 per unit of which income is to be recognised progressively.

On future prospects, the company said that 2011 would be a positive year, especially for medium and high-cost development.

The company mentioned that there are already signs of certain cost escalations in respect to building material and other construction-related costs.