Encorp CEO resigns; posts second straight quarterly loss

Encorp CEO resigns; posts second straight quarterly loss
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KUALA LUMPUR (Feb 23): Encorp Bhd, which posted its second straight quarterly loss in the fourth quarter ended Dec 31, 2017 (4QFY17), announced today the resignation of its group chief executive officer (CEO) Datuk Zakaria Nordin, following the expiry of his contract.

In a filing with Bursa Malaysia today, Encorp said Zakaria, 59, was appointed to his current role on Feb 18, 2016. He is also a former assemblyman of Ampangan, Negri Sembilan.

In a separate filing, Encorp reported a net loss of RM28.22 million for 4QFY17, compared with a net profit of RM16.64 million a year ago, mainly due to lower on-going projects, reduced sales of properties from the current project and no improvement to the number of tenancies for its Encorp Strand Mall in Petaling Jaya, Selangor. 

"The decrease is further exacerbated by liquidated ascertained damages arising from a project amounting to RM46 million, impairment of goodwill for a subsidiary company of RM6 million and impairment to the fair value of properties of RM18.6 million," the filing added.

This resulted in a loss per share of 9.96 sen, compared with an earnings per share of 5.97 in 4QFY16. Quarterly revenue for 4QFY17 also fell 26.5% to RM106.34 million in 4QFY17, from RM144.77 million a year earlier.

For the full year (FY17), the group posted a net loss of RM30.42 million compared with a net profit of RM28.41 million the previous year, on the back of a 12.9% decline in revenue to RM312.94 millionn from RM359.25 million in FY16.

On prospects, Encorp said it is cautiously optimistic on the property market, as is always striving to development attractive products and to constantly innovate in this challenging environment.

"In November 2017, the group has launched Phase 1 of its Dahlia development at Cahaya Alam which consists of 57 two-storey link units, and it has received positive response for the project," Encorp said.

Encorp shares fell 3 sen or 4.69% to 61 sen today, giving it a market capitalisation of RM179.08 million.