Thursday 28 Mar 2024
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KUALA LUMPUR: George Kent (Malaysia) Bhd posted a net profit of RM6.08 million for its third quarter ended Oct 31, 2009 (3Q10), a 347.5% jump from RM1.36 million a year earlier, due to higher margins and better control of costs.

Revenue rose 13% to RM32.47 million from RM28.85 million on increased demand for its meters and industrial products. Earnings per share improved to 2.7 sen from 0.6 sen.

In a filing with Bursa Malaysia today, George Kent said two divisions — meters, manufacturing and industrial (MMI) and infrastructure, investment, water and construction (IWC) — contributed strongly to the profits.

For the nine-month period, net profit stood at RM12.62 million compared with RM5.87 million a year earlier. Revenue for the nine months increased to RM83.82 million from RM80.18 million.

The strong financial result was attributed to the initiative taken by the company since 2007 to have better cost management and improve efficiencies and productivity, George Kent chairman Tan Sri Tan Kay Hock said in a statement.

He added that there had been strong original equipment manufacturer sales in overseas markets.

"In this respect, the board of directors has approved a RM50 million upgrading plan to increase the capacity of the group's manufacturing facilities to cater for the growing demand," he said.

He said the company was also pursuing more than RM1 billion worth of infrastructure projects in the water, waste water, and healthcare industries.

"We are confident that some of these initiatives will translate into confirmed contracts and further boost the order book of our IWC division in the next financial year, while the MMI division is expected to benefit from the global economic recovery as demand for its products grows," he said.

On its outlook, the company said although there were signs of improving economic conditions, the trading environment remained challenging. "In spite of this tenuous environment, the group expects to sustain the improved result for the current financial year," it said.

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