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Glomac’s earnings soar 125 percent for FY2021

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Glomac Primrose

Press Release: Glomac Delivers Commendable FY2021 Performance, Earnings  Soar 125% to RM28.3 million 

▪ Commendable performance despite the challenges arising from Covid-19 ▪ Progress billings improved with resumption of construction activities post MCO 

▪ Earnings visibility remains intact – backed by unbilled sales of RM578 million ________________________________________________________________ 

Glomac Berhad (‘Glomac’ or ‘the Group’) today announced its unaudited results  for the fourth quarter of the financial year ended 30 April 2021. 

In the quarter under review, Group revenue increased 98% to RM115.4 million and profit before tax surged to RM20.9 million. The strong performance was  largely driven by the pick-up in construction activities post-MCO leading to higher  progress billings from Glomac’s ongoing projects such as Saujana Perdana at  Bandar Saujana Utama, Plaza@Kelana Jaya, Saujana Rawang and 121  Residences. Overall profitability was also boosted by a reduction in interest  expense, various ongoing cost rationalisation measures and a lower fair value  loss on investment properties (FY2021: RM13.0 million, FY2020: RM24.6  million). 

Glomac Bhd CEO Datuk Seri Fateh Iskandar Bin Tan Sri Dato’ Mohamed Mansor

For the cumulative 12-month period (‘FY2021’), the Group reported total revenue  of RM366.3 million, an increase of 49% over the corresponding period last year  (‘FY2020’). Profit before tax grew 186% to RM57.7 million due to a pick-up in  construction activities and a lower fair value loss on investment properties versus  FY2020. 

The Group’s financial position remained robust, sporting a cash position of  RM218.2 million and a current ratio of 1.77x. Net gearing stood at a healthy  0.25x against shareholders’ funds RM1.2 billion. 

The Group’s net assets per share stood at RM1.45. In respect of FY2021, the  Board proposed a final single tier dividend of 1 sen per ordinary share which will  be subject to shareholders’ approval at the forthcoming Annual General Meeting. 

During the year, Glomac achieved new sales of RM231 million despite being  hampered by the Covid-19 pandemic. This is a commendable performance given  that the Group strategically held back new launches during the year. Notably, new sales were driven by strong take-up rates from new phases launched in  FY2021. The double-storey terrace houses launched at Saujana Perdana were  very well appreciated by the market – with both Tresna Trianda and Mawar Sari more than 90% sold, whilst Dahlia Sari is more than 60% sold currently. 

Sales was achieved by a strategic combination of right product offerings and  non-conventional marketing strategies. Glomac adapted to the current  environment by initiating aggressive digital marketing campaigns to complement  its conventional sales strategies which effectively boosted sales and conversions. 

The Group also collaborated with the Maybank Islamic HouzKEY home financing  solutions to provide more benefits to buyers, offering 100% financing, non payment during construction period and competitive rates with low monthly  payments. 

Operationally, the Group successfully completed construction and handed over  keys to the buyers of Tresna Teruntum, Saujana Perdana in April 2021. This is a  testament to the operational strengths of Glomac and a commendable  achievement given the disruption in construction activities brought about by the  Covid-19 induced Movement Control Order (“MCO”). 

Looking forward to the coming financial year (‘FY2022’), the property market is  likely to remain challenging as the Covid-19 pandemic has yet to abate.  However, mass vaccinations, a lower interest rate environment and the  extension of the Home Ownership Campaign (‘HOC’) is likely to provide a  much-needed boost to the property sector in the medium term. 

On the company front, Glomac’s earnings visibility is expected to be robust,  backed by unbilled sales of RM578 million. Over the longer term, Glomac will  continue to pace its new launches strategically, leveraging on a strong  development portfolio with a potential estimated GDV of RM8 billion that will  sustain the Group for the coming years. 

— end of press release —

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