KUALA LUMPUR (Sept 27): AWC Bhd posted a net profit of RM2.68 million or 0.85 sen per share for the fourth quarter ended June 30, 2021 (4QFY21) versus a net loss of RM29.9 million or 10.2 sen per share a year ago on higher operating income and lower other operating expenses.

Quarterly revenue rose 29.62% to RM97.01 million from RM74.85 million in the previous year, contributed by its environment, engineering, and rail business segments.

The engineering services company also has proposed a final single-tier dividend of one sen per share in respect of the financial year ended June 30, 2021 (FY21), and it is subject to the approval of the shareholders of the company at the forthcoming annual general meeting.

The entitlement and payment dates shall be finalised by the company at a later date and announced in due course, according to the group's bourse filings on Monday.

The environment division's revenue for the quarter under review increased to RM27.9 million versus RM11.9 million a year earlier, largely attributable to new project executions in the Middle East region.

The engineering division's revenue was up to RM17 million compared with RM15 million, mainly attributable to higher trading revenue recorded by the air-conditioning segment in Singapore.

Revenue for the rail segment increased to RM10.9 million compared with RM8 million previously due to better project progress and orderbook fulfilment.

On a quarterly basis, the company's net profit dropped 57.71% from RM6.33 million in 3QFY21, primarily from provisions made on trade receivables (RM4.6 million), impairments on goodwill arising from investments in subsidiaries (RM2.1 million) and loss on revaluation of investment properties (RM700,000). Revenue grew 20.3% from RM80.64 million in the immediate preceding quarter due to higher revenue recognition in environment, facilities as well as rail divisions.

For the full FY21, the group registered a net profit of RM25.86 million versus a net loss of RM18.8 million a year earlier. Full-year revenue rose 9.16% to RM343.91 million from RM315.05 million.

On prospects, the board of the group remains cautiously optimistic for the new financial year ahead amid challenges from Covid-19.

Nevertheless, the group's financial performance will continue to be underpinned by its existing order book of RM861.8 million.

Shares of AWC settled half a sen or 0.98% lower at 50.5 sen, giving the company a market capitalisation of RM162.14 million.