PROTASCO RECORDS JUMP IN 1H PROFIT

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PROTASCO RECORDS JUMP IN 1H PROFIT

Improved performance following a turnaround in second quarter net profit

 

KAJANG, 28 AUGUST 2019:¬†Protasco Berhad’s turnaround is continuing to gather strength, posting a nine-time jump in its first half net profit to RM8.7 million despite a slightly lower revenue for the six months ended 30 June 2019.

 

The Group’s first half net profit surged 882 percent to RM8.7 million from RM881,000 in the first half last year. This improved performance came despite revenue dropping 11 percent to RM354.9 million, due to lesser periodic works awarded to its Maintenance segment.

 

For the second quarter, Protasco posted a RM4.6 million net profit, against a loss of RM407,000 in the same quarter last year.

 

This improved performance was the result of the Group’s right-sizing exercise that commenced in September 2018. The said exercise contributed to lower operating expenses which decreased 25.6 percent to RM53.8 million in the first half.

 

Aside from controlling cost and expenses, Protasco has seen a turnaround in its Construction segment, which posted a pre-tax profit of RM11.6 million in the first half against a loss of RM1.5 million in the preceding year corresponding period. The segment recorded a 54 percent jump in first half revenue to RM145.9 million, mainly due to contributions from the Perumahan Penjawat Awam (PPA) Phase 2 project and Drainage and Irrigation (DID) works awarded.

 

Its Property Development segment recorded higher revenue of RM3.4 million due to sales of units in its DeCentrum City development in Kajang.

 

“The transformation we are undergoing is not easy, but we are beginning to see results. Each segment is beginning to pick up momentum and move towards profitability. Our strategy is to ensure this momentum continues and will sustain us for the long run,” said Dato’ Sri Ir Chong Ket Pen, Executive Vice Chairman and Group Managing Director.

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