TA Enterprise’s 3Q pre-tax profit down 54%

KUALA LUMPUR: TA Enterprise Bhd on Dec 8 posted a 54% year-on-year (y-o-y) drop in pre-tax profit to RM23.3 million for its third quarter ended Sept 31, 2009 (3Q2009), compared with RM51.2 million in the previous year’s corresponding period.

According to the company’s statement to Bursa on Dec 8, the decrease in the Group’s profit was mainly attributed to the lower revenue from stock broking and property divisions, higher provisions for doubtful debts/impairment losses on investments and lower gain on disposal of investments.

Its 3Q2009-consolidated revenue of RM118.2 million fell by 16.6%, compared with RM141.7 million in the previous year’s corresponding period. The Group recorded a drop in property development, while brokerage income and gain on disposal of investments were higher in the current quarter.

“The current economic statistics show that the economy seems to be in the path of recovery. The relatively low interest rate prevailing in the market should support economic growth and boost the activities of the financial market. However, the newly imposed RPGT of 5% on gain on disposal of properties may impede the growth of the properties sector,” the Group said. It expects to perform satisfactorily, barring unforeseen circumstances, for the financial year ending Jan 31, 2010.
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