KUALA LUMPUR (May 26): GFM Services Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) increased by 4.42% to RM2.65 million from RM2.54 million a year earlier, on higher gross profit as the group incurred lower projects. 

During the quarter under review, GFM’s gross profit (GP) expanded to RM11.0 million, translating to a GP margin of 38.3%, versus 33.7% in 1QFY21 as the group incurred lower project costs. Net profit margins also expanded to 9.2%, from 7.9% in the same period last year.

The company’s finance costs also reduced to RM4.9 million in 1QFY22, from RM5.4 million in 1QFY21, mainly due to the repayment of borrowings and a reduction in the repayment of KP Mukah Development Sdn Bhd’s term loan, following the lower overnight policy rate.

Revenue for the quarter under review, however, declined 10.13% to RM28.8 million from RM32.05 million, mainly due to completion of several of the group’s facilities management projects and lesser variation orders recorded during the quarter.

Going into 2022, GFM executive chairman Ruslan Nordin said the company is cautiously optimistic on the prospects of the group, supported by its ongoing initiatives to expand its capabilities and orderbook. 

“For our FM segment, we continue to deliver FM services at the sites we manage. At the same time, we are working hard to expand our clientele base and project pipeline, as we participate in tenders. As of 31 March 2022, our outstanding orderbook stands at RM1.07 billion.”

“Besides that, we are exploring avenues to grow our recurring income streams. To this end, we recognise the earnings-accretive prospects in the Rest and Service Area (“RSA”) business and are eyeing to develop the proposed RSA at Hulu Bernam, Perak.

“We plan to build the premises as a high-end public infrastructure, featuring modern retail, as well as food and beverage (“F&B”) spaces. Upon completion, GFM will become the facility manager, solidifying the group’s orderbook,” he added. 

GFM shares closed unchanged at 18 sen on Thursday (May 26), for a market capitalisation of RM100.69 million.