KUALA LUMPUR (Dec 23): George Kent (Malaysia) Bhd, which continues to push its order book to RM5 billion within the next three years from RM1.5 billion currently, sees the stronger US dollar and British pound against the ringgit resulting in higher import prices, which would stand to benefit the group as one of the world’s largest metering exporters.

Its executive director Bernie C. K. Ooi, however, expects a mixed economy growth next year with its share of volatilities. 

“We see a mixed economy growth going into 2015. Private consumption is expected to crimp due to tighter monetary conditions and further fuel subsidy rationalisation, while public spending would be somewhat affected and export growth more than moderate,” he said in a statement today.

He added that the sustainability of Malaysia’s favourable outlook into 2015 and beyond hinges on structural reforms and policies and surveillance to curb any potential negative impact resulting from the Goods and Services Tax implementation, rising cost of living and lower oil prices.

“Although 2015 will have its share of volatilities, we remain optimistic over the pace of our growth,” said Ooi.

He noted that financial year ended Jan 1, 2014 (FY14) was a bumper year for George Kent where it posted a record revenue of RM506.3 million and a net profit of RM36.2 million, an increase of 83% and 42% respectively from FY13. 

Its net cash stood at nearly RM200 million out of its total shares of 225 million.

Despite a challenging and increasingly competitively market, George Kent said its financial performance has continued to deliver on the set targets for this year.

“The closing high to the year was the contract award of RM57 million [on Oct 29] to design and build Phase 2 of the Kuala Lipis Hospital after completing Phase 1 on time and within budget. We have also completed Package 3A of the inter-state raw water transfer project, Semantan Intake and Pumping Station Works,” said Ooi.

He added that work to integrate the system works for the RM1.1 billion Ampang Light Rail Transit extension line is well underway, with one-third of the project already completed.

“We will continue to look at vast opportunities available in the construction and engineering sector within and beyond Malaysian shores, with the aim of offering our specialised engineering capabilities and this is where our strong competitive edge and track record speak for themselves.

“We are confident that the expertise we have will enable us to win lucrative contracts and drive earnings,” he said.

For the nine months ended Oct 31, 2014 (9MFY15), George Kent's net profit rose 12% to RM19.8 million, from RM17.7 million the period before. Revenue came in 2% lower at RM235.9 million from RM239.5 million in 9MFY14.

“Our shareholders continued to reap the benefits of our financial consistency with the recent bonus share issue of 1-for-3 in October 2014, expanding our share base to RM300.41 million to stoke share liquidity, and paid out a total of RM9.613 million in dividends for FY15,” Ooi said.

Shares of George Kent were down 3.23% at RM1.20 at the end of the morning trading session today, bringing a market capitalisation of RM372.51 million.