KUALA LUMPUR (Dec 13): Eco World International Bhd's (EWI) net loss narrowed to RM37.69 million for the fourth quarter ended Oct 31, 2023 (4QFY2023), from RM95.73 million in the previous year’s corresponding period.

The improvement is thanks to a foreign exchange (forex) gain of RM15.53 million in the quarter under review, compared to a forex loss of RM5.33 million in 4QFY2022 due to the appreciation of the British pound against the ringgit as a result of the repayment of advances by its UK joint venture (JV) EcoWorld-Ballymore and the conversion of British pound-denominated bank balances.

There was also a reversal of impairment on investment in EcoWorld-Ballymore of RM64.67 million following significant progress in monetisation of inventories during the year — although this was offset by impairment losses on the amount owing by Eco World London of RM90.96 million — as well as lower finance costs as a result of full settlement of all borrowings in the previous quarter, said EWI in a bourse filing.

Revenue for 4QFY2023, however, dropped 33.82% to RM28.55 million from RM43.14 million, mainly due to the lower number of units sold and handed over to customers.

EWI declared a final dividend of six sen per share in the quarter, which translates to RM144 million, payable on Jan 14.

Combined with the RM792 million dividend already distributed, the group’s total dividends for FY2023 amounted to RM936 million, surpassing the targeted excess cash distribution of RM900 million set last year.

For FY2023, EWI's net loss was lower at RM85.37 million from RM234.42 million a year ago, despite revenue declining 34.49% to RM104.8 million from RM159.96 million.

The group achieved RM1.18 billion in sales plus reserves of RM114 million, bringing total sales for FY2023 to RM1.30 billion, with Embassy Gardens being the largest contributor at RM617 million, followed by RM215 million from Wardian and RM107 million from London City Island.

As at end-October, EWI still has about RM850 million of completed and nearly completed stocks that are available for sale, said its president and chief executive officer Datuk Teow Leong Seng.

“EWI’s effective share of these stocks is approximately RM650 million. With regard to all launches for the remaining sites, these will continue to be put on hold given the ongoing weak sentiment amongst homebuyers and significant cost inflation in the UK. We will consider proceeding with launches only when market conditions improve, cost pressures stabilise and expected returns that meet the group’s requirements can be forecast with greater certainty,” he said.

“As such, EWI’s target for FY2024 is to sell out all our remaining completed and near completed stocks with the aim of distributing the excess cash generated back to our shareholders, net of the amounts required for the group’s pared down operational requirements,” he added.

Shares of EWI closed up half a sen or 1.41% at 36 sen on Wednesday, giving the group a market capitalisation of RM864 million.