Friday 29 Mar 2024
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KUALA LUMPUR (Sept 14): George Kent (Malaysia) Bhd’s net profit for the second quarter ended July 31, 2020 (2QFY21) jumped 135% to RM8.74 million from RM3.73 million in the preceding quarter ended April 30, thanks to higher work orders in its water metering business which have continued to come in, despite business closures during the government’s movement control order (MCO).

Revenue rose 78% quarter-on-quarter to RM70.16 million from RM39.31 million. The group declared an interim dividend of one sen per share for the financial year ending Jan 31, 2021, which will be paid on Oct 22 this year, its stock exchange filing showed.

In a statement, the group said although its factories were closed during the restricted movement period, orders for its water meters continued to come in and some of these orders were fulfilled when it resumed operations from May 4. “The group in 2QFY2021 took steps to gradually restore its manufacturing capacity to clear the backlog of orders, and [to] cater for new orders from local and regional water authorities,” it said.

On a year-on-year basis, net profit was down 21% from RM11.05 million in 2QFY20, while revenue declined 28% from RM97.72 million, primarily as the group’s construction segment was impacted by business closures during the MCO.

For the cumulative six months ended July 31, the group's net profit was down 49% y-o-y at RM12.47 million versus RM24.56 million previously, while cumulative revenue fell 39% to RM109.47 million from RM180.5 million.

Nevertheless, George Kent chairman Tan Sri Tan Kay Hock said the board of directors remains optimistic about the group's prospects, given ongoing operating and long-term plans, in particular under its metering business.

“It is our strategy to become a one-stop purveyor of water meters. We are actively growing our product portfolio through partnerships with other manufacturers. The expanded range will accelerate our penetration into more markets around the world,” he said.

Shares of George Kent ended three sen or 4.29% higher at 73 sen today, giving the group a market capitalisation of RM411.19 million.

Edited ByTan Choe Choe
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