Daiman Development 1Q profit drops on higher operating costs

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KUALA LUMPUR (Nov 25): Daiman Development Bhd posted a steep drop in its net profit to RM3.9 million for its first quarter ended Sept 30, 2014, compared with RM32.6 million a year before.

In a filing with Bursa Malaysia, Daiman said the drop in profit was not only due to an increase in operating costs from its hospitality division, but also also because it had recognised a one time accounting gain of RM37.2 million in 1QFY14.

Revenue however, came in higher at RM54.5 million against RM28 million previously, due to higher property sales.

On prospects, Daiman said it was confident the financial results of the group for the financial year ending June 30, 2015, would be "satisfactory".

The stock price fell two sen lower at RM3.12, with a market capitalisation of RM661.21 million.