Quarterly Report For The Financial Period Ended 30 June 2017
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Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Second Quarter Ended 30 June 2017
Condensed Consolidated Statement Of Financial Position As At 30 June 2017
Review of Performance
For the current quarter and current financial year to date under review, the Group recorded revenue of RM37.8 million and RM67.1 million respectively
- Analysis of our revenue by activities is as follows:-
- Analysis of our revenue by geographical locations is as follows:-
- Profit after tax ("PAT")
- Our unbilled order book as at 30 June 2017 amounted to RM358.0 million, details as follows:
- Design Consultancy Services and Construction Supervision for the Proposed Tun Razak Exchange (TRX) External Roads involving "Projek Penyuraian Trafik dan Kerja-Kerja Menaiktaraf Jalan Tun Razak (Dari Jalan Langgak Golf ke Bulatan Kampung Pandan) Kuala Lumpur" totalling RM19.0 million;
- Preliminary Design Consultancy Services for Infrastructure Works for the East Coast Rail Link ("ECRL") from KM0 to KM220 of the ECRL totalling RM16.3 million; and
- Appointment as the Consultant Civil and Structural Engineer & Mechanical and Electrical Engineer for External Infrastructure Works for "Cadangan Pembangunan Bercampur Bukit Bintang City Centre yang mengandungi Pusat Membeli Belah, Ruang Pejabat, Pusat Persembahan Muzik, Pangsapuri Perkhidmatan dan Hotel di atas Lot PT143, Seksyen 56 di Jalan Hang Tuah / Jalan Pudu, Wilayah Persekutuan Kuala Lumpur" totalling RM6.3 million.
The engineering design revenue declined for both current quarter and year to date ended 30 June 2017 were mainly due to the completion of LRT Ampang Line Extension and Westports Construction and Completion on Land Reclamation works, Container Yard and Wharf whereby the design revenue contributed by these projects contracted in line with the completion status. The decline was compensated by newly secured projects in 2017 including East Coast Rail Line ("ECRL") scheme design and Kuala Lumpur-Singapore High Speed Rail (Reference Design Consultants 05).
The reduction in supervision revenue for both current quarter and year to date ended 30 June 2017 was attributed to the decrease in revenue from LRT Ampang Line Extension in line with the completion status of this project. However, the decline was compensated by supervision revenue contributed by few projects which have been progressing in line with the construction stage of these projects. They are Maju Expressway Extension To KLIA, Sungei Besi-Ulu Kelang Elevated Expressway and West Coast Expressway.
The revenue from project management grew substantially for both current quarter and year to date ended 30 June 2017 due to the contribution from MRT Line 2 – Jajaran Sg. Buloh-Serdang-Putrajaya which is progressing as per schedule.
BIM services accounted for small proportion of the group’s revenue and no significant fluctuation noted for both current quarter and financial year to date.
Reimbursable income is recognised on a back to back basis with sub-consultant and allowances claimed by supervision staff and therefore it has no significant impact on the financial performance of the Group regardless of the decline or rise in reimbursable income.
Local market continued to contribute significant portion of revenue amounting to 98.0% of the Group’s total revenue. The higher revenue posted by Malaysia segment was attributed to local projects explained in section (a) above.
The PAT grew by 17.4% or RM0.91 million to RM6.13 million for first half year 2017 from RM5.22 million recorded in previous corresponding period ended 30 June 2016 despite of the marginal decline in second quarter 2017. This was mainly attributable to stronger gross profit margin achieved for the current period.
The above unbilled order book will be billed progressively on average over the next two (2) to five (5) years.
Subsequent to 30 June 2017, the Group has managed to secure following contracts totalling RM41.6 million to provide:
As disclosed in the Prospectus of the Company dated 29 June 2016, the Group has put in place a series of future plans as follows:-[a] Geographical expansion into ASEAN, Middle East and India regions;
[b] Continuous enhancement on its three (3) existing core services (i.e. engineering services, project management and Building Information Modeling ("BIM") services) and proposed venture into a fourth (4th) core service i.e. facility management; and
[c] Venturing into the provision of support services to the water and power generation sectors which are expected to continue receiving strong government support given their strategic importance to the country.
The Group expects to perform satisfactorily in the financial year 2017 given the strong order book, underpinned by the positive outlook in the construction industry both locally & regionally, driven largely by government continued spending on infrastructure projects.
Barring any unforeseen circumstances, the Board of Directors of the Company is of the opinion that the prospects for the remaining period to the end of the financial year ending 31 December 2017 will remain favourable.