Pegasus Heights sees impact from cancelled RM24m project

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KUALA LUMPUR (July 15): Pegasus Heights Bhd, formerly known as Naim Indah Corp Bhd, said its contract as a project management consultant for a 30-storey mixed commercial development at Teluk Likas, Sabah, has been terminated.

In a filing with Bursa Malaysia today, Pegasus said the company and GE Properties Sdn Bhd had today (July 15) both mutually agreed to cease the letter of award (LoA) for the job.

It added that the cancellation of the LoA would have an impact on the group's revenue and profit. Based on the preliminary gross development cost of RM480 million, the value of the award was estimated at RM24 million.

On June 9, 2015, GE Properties had appointed Pegasus, the role of project management consultant for the project, where the payable fees will be based on certificates of progress work done at the site. The project features a basement carpark, lower group shop, duplex shop office, hotel tower, condominium, anchor lot and cineplex, and the duration of the project was over a period of five years.

Pegasus has been loss-making for the past seven quarters. For the first financial quarter ended March 31, 2019 (1QFY19), its net loss narrowed to RM1.56 million from RM2.75 million a year ago, on higher sales recorded and lower operation costs. 

Quarterly revenue rose 179.7% to RM1.39 million ,from RM498,000 in 1QFY18, mainly due to higher contribution from the property management division. 

Shares of Pegasus closed unchanged at one sen today, with 3.5 million shares done, bringing a market capitalisation of RM71.96 million.