BY THOMAS HUONG
Top officials: Tan (centre) with executive directors Cheng Peng Liong (right) and Yap Li Li looking at Grand-Flo’s the annual report after the AGM.
PETALING JAYA: Property development is expected to provide half of Grand-Flo Bhd’s revenue this year, compared with a 20% contribution in 2014.
The tracking solutions provider and property developer group has two ongoing projects located in mainland Penang – the Vortex Business Park with a gross development value (GDV) of RM220mil in Batu Kawan, and The Glades landed residential project with a GDV of RM63mil in Bukit Mertajam.
Both projects are targeted for completion in 2017, and currently, unbilled sales are at RM78.1mil.
“The take-up rate is 70% for the first phase of Vortex Business Park. There has been encouraging response for The Glades since the soft launch,” said Grand-Flo group president and managing director Derrick Tan.
He also said the group was looking for land with “good value” in the Klang Valley and strategic growth areas in the country.
“In addition to a healthy balance sheet, we recently raised RM14mil from the conversion of warrants, which would be utilised to expand our property venture and explore merger and acquisition opportunities,” said Tan after the group’s AGM at Tropicana Golf & Country Resort.
On its tracking solutions business, Tan said Grand-Flo’s order book was at RM14mil.
“We are still adding new customers from different industries, including food and beverage, logistics and fast-moving consumer goods,” he said.
Tan also said the group’s 19% Thailand associate, Simat Technologies PLC, which provides Internet broadband services, was aiming to break even by year-end.
“This can be achieved by growing the current 6,000 subscribers to 10,000 or 12,000 by end-2015,” said Tan.
Meanwhile, Grand-Flo posted a 50.5% year-on-year rise in net profit to RM5mil for the first quarter ended March 31, 2015 on the back of a 91.7% rise in revenue to RM27.2mil.
This was attributable to a favourable product mix as well as new contributions from the property segment besides software sales to companies that needed to comply with the implementation of the goods and services tax.
At the AGM, shareholders approved a final tax-exempt dividend of one sen per share, which translates into a total dividend payout of RM4.5mil, representing 67.9% of the 2014 financial year’s net profit.
Grand-Flo’s dividend policy is a distribution of a minimum 20% of net profit.
For more information on
Building and Construction event, please visit www.asiapacificevents.com
No comments:
Post a Comment