KUALA LUMPUR (Aug 24): Construction company Ageson Bhd posted a net profit of RM8.26 million for the fourth quarter ended June 30, 2021 (4QFY21), a drop of 53.1% from RM17.62 million a year ago due to the lower margin from trading of construction materials and higher operating expenses.

This led earnings per share to fall to 0.71 sen compared with 2.88 sen in the same quarter last year, the company's filing with Bursa Malaysia showed.

Despite lower net profit, revenue for the quarter grew 32.43% to RM51.28 million from RM38.72 million in the previous year, mainly due to higher billing recognised from trading of construction materials.

"The construction division (was) the main contributor to the group revenue, representing 98.37% of the total revenue, followed by the property division (with) 1.63%," said Ageson.

According to the group, there was no dividend paid during the current quarter under review and year to date.

For the full financial year of FY21, net profit dropped 17.88% to RM31.95 million compared with RM38.91 million a year earlier. This was despite full-year revenue jumping 76.41% to RM166.25 million from RM94.24 million.

Commenting on its outlook, Ageson said the board will continue to monitor the development of Covid-19 pandemic closely to ensure that the group is able to cope with these challenges to its bottom line and cash flow, besides actively focusing on cost optimisation and streamlining its existing processes.

"Despite the existing balance order book in the construction division, the group will perpetually concentrate on trading of construction materials and property development which are profitable to the group," it said.

At the time of writing, shares of Ageson were unchanged at 9.5 sen. The company saw a market capitalisation of RM123.37 million.