Y&G Corp returns to the black in FY2009

KUALA LUMPUR: Main board-listed property company, Y&G Corp Bhd returned to profitability in its financial year ending Dec 31, 2009, recording profits after tax of RM735,000 from a loss of RM3.27 million in its previous financial year.

According to a statement to Bursa Malaysia on Feb 12, the company said it returned to the black on the back of improved revenue to RM44.11 million in FY2009 from RM26.17 million in the previous financial year.

Basic earnings per share for FY2009 is 1.44 sen from a loss of 6.4 sen in the previous financial year.

Meanwhile, for the fourth quarter, the company recorded profits after tax of RM23,000 from a loss of RM1.5 million in the same period for the previous financial year. Revenue for these two periods climbed to RM14.6 million from RM11.36 million, while basic earnings per share rose to 0.04 sen from a loss of 2.9 sen.

The group said it recorded profits despite of the RM1 million provision for doubtful receivables against a deconsolidated subsidiary made in the current financial quarter, the RM1.238 million impairment loss of land held for development and the net deconsolidation loss of RM1.495 million in FY2009 because of the significant increase in turnovers in 4QFY2009 and the entire FY2009. The statement did not say exactly what caused the increase in revenue.

The provision for impairment of investment in a deconsolidated subsidiary and doubtful receivables made in the preceding year also caused the increase in profits, it added.

The company also said that it expects a further improvement in revenue due to a sustained sentiment in the property development and construction.