GFM Services 3Q net profit triples to RM8.1m

GFM Services 3Q net profit triples to RM8.1m
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KUALA LUMPUR (Nov 24): GFM Services Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY2022) tripled to RM8.06 million from RM2.61 million in the same period last year on improved income contribution from its facilities management services segment.

Earnings per share increased to 1.42 sen from 0.49 sen previously, the facilities management services specialist’s Bursa Malaysia filing on Thursday (Nov 24) showed.

Quarterly revenue climbed 46.49% to RM40.18 million from RM27.43 million in the same period a year ago.

In the nine-month period ended Sept 30, 2022 (9MFY2022), GFM's net profit surged 65.12% year-on-year to RM12.89 million from RM7.81 million as cumulative revenue grew 6.47% to RM97.04 million from RM91.44 million, mainly on the back of the maiden contribution from a new contract to provide facilities management services awarded by Public Works Department (JKR).

GFM's facilities management services segment remained as the major revenue contributor in 9MFY2022, with RM65.8 million making up 68% of the group’s revenue, while the concession arrangements business contributed the remaining 32%, which is RM31.2 million, after consolidation adjustment.

Looking ahead, GFM is cognisant of the external headwinds such as, among others, the Covid-19 pandemic, inflationary pressures and prolonged Russia-Ukraine war, which may impact the current operating landscape and economic recovery.

Against this backdrop, the group continues to focus on strengthening its competitive position in the facilities management (FM) industry by enhancing its technical competencies and expanding GFM’s project pipeline, while implementing cost optimisation initiatives.

For the FM business, GFM noted it continues to serve its existing clients by providing a safe and sustainable working space.

“At the same time, we are pursuing business opportunities to grow our orderbook, which stands at RM1.36 billion as at Sept 30, 2022.

“In fact, we have secured a five-year FM contract from JKR which will contribute positively to our financial performance for the next five years until July 2027. As we move forward, the gradual revenue recognition of our orderbook, of which a majority is made up of KP Mukah, provides long-term earnings visibility with stable consistent income for the remaining 15 years of the concession tenure until 2035.

“Apart from that, GFM is also exploring opportunities to provide FM services for workforce lodging,” it said.

As for GFM’s concession arrangements segment, the group said it continues to serve its mandate and perform FM service at the UiTM Mukah campus until 2035.

To enhance growth, GFM is exploring value-accretive prospects that complement its business, primarily in the rest and service area (RSA) business.

As at 3.55pm, GFM’s share price was up 17.14% or three sen to 20.5 sen, bringing the group a market capitalisation of RM118 million.

Lam Jian Wyn