SECOND STRAIGHT YEAR OF PROFIT FOR DAMANSARA REALTY
KUALA LUMPUR, 20 February 2019: Damansara Realty Berhad (DBhd or the Group) posted a 9.4 percent jump in net profit to RM19.5 million for the year ended 31 December 2018, driven largely by strong organic growth in its Integrated Facilities Management (IFM) segment.
DBhd’s revenue for the year jumped 21.9 percent to RM304.13 million from RM249.48 million in the previous year. Its pre-tax profit rose 32.9 percent to RM25.41 million and operating profit rising 29 percent to RM26.67 million.
After adjusting for a one-off expenses incurred for corporate exercises last year, its operational profit jumped more than 300 percent to RM20.67 million in 2018, against RM6.57 million in 2017. DBhd reported non-recurring other income of RM27.21 million in 2017, largely arising from its Johor property development projects, compared to RM5.99 million in 2018.
“The strong rise in our recurring income is an attestation of our own ability to generate better quality earnings built on healthy organic growth, as we continue to shift our business focus to high-growth markets and higher-margin projects,” said DBhd’s Group Managing Director, Ts. Brian Iskandar Zulkarim.
“Having a range of recurring income streams have buffered the impact of the soft property market, with IFM being the main driver of sustainable profit and organic growth,” he added.
“Moving forward, we will be focusing on expanding our IFM capabilities in technology and innovation, to enable our customers to improve efficiency, productivity and automation while managing rising manpower costs,” said Ts. Brian.
DBhd has been systematically streamlining its operations to optimise resources and capital to generate better margins and returns, exiting niche markets and low margin operations. At the same time, it is expanding its Project Management & Consultancy (PMC) segment by pairing it with the Property & Land Development (PLD) segment to target specialised projects such as hospital and medical centre development.
“Combining strengths with PLD to expand our consultancy services beyond the healthcare sector and broaden our specialty in the areas of construction and hospital management will diversify income streams as well as support the Group’s property projects,” he added.
For the fourth Individual quarter ended 31 December 2018, DBhd saw a net profit of RM14.88 million on revenue of RM82.3 million.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).