Friday 29 Mar 2024
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KUALA LUMPUR (May 25): Fitters Diversified Bhd swung back to the black in the first quarter ended March 31, 2018 (1QFY18) with a net profit of RM1.39 million or 0.31 sen earnings per share, mainly due to higher property development and construction revenue.

In an exchange filing today, the group said this compared to a net loss of RM840,000 in the corresponding quarter a year ago.

Revenue rose 8.6% on-year to RM77.39 million, from RM71.28 million in 1QFY17.

The diversified group said profit before tax (PBT) for its property development and construction segment more than quadrupled to RM4.12 million in the quarter.

This, it said, was in tandem with higher revenue contributed by an ongoing project management and construction contract, which it secured late last year.

Fitters, which first started as a fire protection specialist, said its fire services division posted a decline in both revenue and PBT, due to less sales, slowdown in progress of projects, and uncertified project variation orders.

Its HYPRO PVC-O pipes manufacturing and distribution business, meanwhile, recorded a loss of RM1.73 million, an additional loss of 20.9% compared to 1QFY17, although revenue grew 96.1% to RM1.86 million.

Its renewable and waste-to-energy segment showed an increase in loss by 23.3% on year at RM1.05 million, mainly due to the decline in crude palm oil and palm kernel prices.

In a separate statement, managing director Datuk Richard Wong said the group is targeting to deliver growth in performance going forward, after a successful streamlining of its business model over the past two years.

“While the renewable energy and fire services businesses will continue to be stable contributors to group performance, growth will be driven by the pipe manufacturing and property development and construction segments,” said Wong.

He added the group is optimistic of its pipe manufacturing business turning in positive contribution for FY18.

“Going forward, we are confident of achieving accelerated growth in performance, as we target not only new pipe installations, but also the pipe replacement market to resolve the chronic non-revenue water issue in the country.

“We have not only seen close to 300 km of pipes installed in 10 States in the country, but also received the necessary approvals and certifications from the relevant authorities including SPAN, permitting our pipes to be used in water and waste water projects,” he added.

Shares in Fitters closed 1.5 sen or 4% higher at 39 sen today, valuing it at RM174.12 million.

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