Saturday 03 Jun 2023
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PETALING JAYA (Nov 23): George Kent (M) Bhd reported a net profit of RM5.92 million in the second quarter ended Sept 30, 2022 (2QFY23), which was more than 45 times higher as compared to the net profit of RM133,000 obtained in the same quarter the previous year (2QFY22).

The huge jump in profitability was attributed to the robust performance of the metering division, which saw 40% higher revenue during the quarter, while the engineering and construction division’s profit increased by 870% to RM1.7 million in the quarter, from RM176,000 in 2QFY22.

“I am delighted to report that the group has produced excellent results for the second quarter of our 2023 financial year, despite the challenging economic conditions. It is particularly heartening to see our metering division continuing to perform robustly and record strong sales,” said George Kent’s chairman Tan Sri Tan Kay Hock in a press release accompanying the financial results announcement.

The group’s metering division recorded a revenue of RM36.8 million, higher by 40% as compared with the corresponding quarter in the previous year. Almost in tandem, the segment’s profits increased by 34.6% year-on-year to RM9.71 million, from RM7.21 million in 2QFY22.

The prospect of its water meter business was further boosted as the group managed to secure over RM50 million worth of tenders as of Oct 31. George Kent is looking forward to the launch of its Class “D” volumetric water meter in December 2022, the group stated in the press release.

It said that the Class D water meter provides more accurate readings at low flow rates, able to better detect leakages and hence reduce non-revenue water for utility companies.

Meanwhile, its engineering and infrastructure construction division recorded revenues of RM25.0 million and RM1.7 million of segment profits for 2QFY23.

The revenue for the quarter was 53% lower as compared to RM53.36 million in 2QFY22, mainly attributed to the completion of a hospital project, said George Kent. Its profits were higher because the corresponding quarter’s profits were affected by the impact of the impairment loss of RM9.85 million, arising from the decision to sell its investment in the LRT3 joint venture.

“We are currently actively tendering within the engineering and infrastructure construction space to replenish our order book. Moreover, the group will also be looking at business opportunities including acquisitions of companies in our core- and related sectors, to increase our revenue,” said Tan.

The group’s board of directors has declared an interim dividend of 1.0 sen per share for FY23, payable on Dec 29 to shareholders whose names appear in the Record of Depositors on Dec 8.

George Kent’s share price increased one sen or 1.03% on Wednesday (Nov 23), valuing the group at RM276 million.

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