Property developer Malaysian Resources Corporation Bhd (MRCB) recorded a revenue of RM475 million and profit before tax of RM18.2 million in the first half of 2019 (1H19). The revenue is recorded as 43% lower on year-on-year basis.
In a statement, the group said that the revenue and profits were impacted by the group’s newer property development projects still being at the early stage of construction, when revenue and profit recognition is minimal, and income from the LRT3 Project being deferred as a result of it being remodelled from a PDP to a fixed price turnkey project.
Group Managing Director Imran Salim said although the group has unbilled property sales of RM1.8 billion, as a high-rise developer the ability to book revenue and profits hinges on construction progress.
“Although construction is progressing well at our Sentral Suites and Carnegie Development in Melbourne, these key projects will not begin contributing significantly to profits until next year, when we also expect the pace of revenue and profit recognition from the LRT3 project to increase,” he said.
The Property Development & Investment Division recorded a revenue of RM156.4 million and operating profit of RM47.0 million in 1H19.
MRCB said the lower revenue and operating profits were due to no revenue being recognised from the sale of completed unsold units which had yet to reach Sales and Purchase completion, as well as the Group’s key high-rise residential development projects currently being in the early phase of construction.
The Division sold RM244.2 million worth of properties during the period, lifting its unbilled property sales to RM1.8 billion, from RM1.6 billion at the end of the first quarter of 2019. These unbilled sales will be recognised as revenue progressively until the construction completion of the projects, and after the Sales and Purchase completion for all completed units sold.
(27 August 2019)
