Zecon widens 1Q loss to RM3.1m on higher project cost

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KUALA LUMPUR (Nov 21): Zecon Bhd has widened its net loss to RM3.1 million in the first quarter ended Sept 30, 2014, from net loss of RM213,000 in the previous corresponding quarter.

The bigger loss was largely due to additional costs affecting some of its projects, said the construction firm in a filing with Bursa Malaysia.

Zecon’s revenue declined 16.9% to RM23.98 million from RM28.86 million a year ago on lower percentage of revenue recognition, as most of its projects are in their initial stages of implementation.

On prospects, Zecon sees significant boost in revenue from a deal, should it materialised, for Perumahan Rakyat 1 Malaysia, which the group is currently finalising.

The group will also continue to focus on the implementation of current construction projects.

Zecon was untraded at 2.43 pm today. It was last traded yesterday with a closing price of 98.5 sen, giving it a market capitalisation of RM117.3 million.