Artist impression of 121 Residences. Image from: Glomac
Glomac Berhad (‘Glomac’ or ‘the Group’) yesterday announced its unaudited results for the fourth quarter of the financial year ended 30 April 2021.
In the quarter under review, Group revenue increased 98% to RM115.4 million and profit before tax surged to RM20.9 million. The strong performance was largely driven by the pick-up in construction activities post-MCO leading to higher progress billings from Glomac’s ongoing projects such as Saujana Perdana at Bandar Saujana Utama, Plaza@Kelana Jaya, Saujana Rawang and 121 Residences.
Overall profitability was also boosted by a decrease in interest expense, numerous ongoing cost rationalisation measures and a lower fair value loss on investment properties (FY2021: RM13.0 million, FY2020: RM24.6 million).
For the cumulative 12-month period (‘FY2021’), the Group reported total revenue of RM366.3 million, an increase of 49% over the corresponding period last year (‘FY2020’). Profit before tax grew 186% to RM57.7 million due to a pick-up in construction activities and a lower fair value loss on investment properties versus FY2020.
The Group’s financial position remained robust, sporting a cash position of RM218.2 million and a current ratio of 1.77x. Net gearing stood at a healthy 0.25x against shareholders’ funds RM1.2 billion.
The Group’s net assets per share stood at RM1.45. In respect of FY2021, the Board proposed a final single-tier dividend of 1 sen per ordinary share which will be subject to shareholders’ approval at the forthcoming Annual General Meeting.
During the year, Glomac achieved new sales of RM231 million despite being hampered by the Covid-19 pandemic. This is a commendable performance given that the Group strategically held back new launches during the year. Notably, new sales were driven by strong take-up rates from new phases launched in FY2021. The double-storey terrace houses launched at Saujana Perdana were very well appreciated by the market – with both Tresna Trianda and Mawar Sari more than 90% sold, whilst Dahlia Sari is more than 60% sold currently.
Sales were achieved by a strategic combination of the right product offerings and non-conventional marketing strategies. Glomac adapted to the current environment by initiating aggressive digital marketing campaigns to complement its conventional sales strategies which effectively boosted sales and conversions.
The Group also collaborated with the Maybank Islamic HouzKEY home financing solutions to provide more benefits to buyers, offering 100% financing, non-payment during construction period and competitive rates with low monthly payments.
Operationally, the Group successfully completed construction and handed over keys to the buyers of Tresna Teruntum, Saujana Perdana in April 2021. This is a testament to the operational strengths of Glomac and a commendable achievement given the disruption in construction activities brought about by the Covid-19 induced Movement Control Order (“MCO”).
Looking forward to the coming financial year (‘FY2022’), the property market is likely to remain challenging as the Covid-19 pandemic has yet to abate. However, mass vaccinations, a lower interest rate environment and the extension of the Home Ownership Campaign (‘HOC’) is likely to provide a much-needed boost to the property sector in the medium term.
On the company front, Glomac’s earnings visibility is expected to be robust, backed by unbilled sales of RM578 million. Over the longer term, Glomac will continue to pace its new launches strategically, leveraging on a strong development portfolio with a potential estimated GDV of RM8 billion that will sustain the Group for the coming years.
(29 July 2021)