KUALA LUMPUR (Dec 13): Eco World International Bhd (EcoWorld International) announced its results for 4Q2023, where it saw a lower loss before tax (LBT) of RM36.93 million in 4Q2023 compared to LBT of RM94.64 million in 4Q2022.
This is mainly due to: foreign exchange gains from appreciation of British Pound (GBP) against Ringgit Malaysia (RM) on repayment of advances by EcoWorld-Ballymore and conversion of GBP denominated bank balances vs foreign exchange losses recorded in 4Q 2022; reversal of impairment on investment in Eco World-Ballymore of RM64.67 million following significant progress in monetisation of inventories during the year (offset by impairment losses on amount owing by Eco World London of RM90.96 million), and lower finance costs as a result of full settlement of all borrowings in the previous quarter.
The group’s LBT for FY2023 of RM79.52 million was also substantially lower than the LBT of RM229.36 million recorded in FY2022 due to higher interest income earned following repayment of shareholder’s advances from its UK jointventures, namely Eco World-Ballymore and Eco World London, and the reasons mentioned above in relation to its 4Q2023 performance.
EcoWorld International achieved RM1.181 billion sales plus reserves of RM114 million, adding up to total of RM1.295 billion for FY2023.
Embassy Gardens, which brought in RM617 million sales, was the biggest contributor to sales, followed by Wardian (RM215 million), London City Island (RM107 million) and Yarra One (RM91 million).
These sales have generated substantial cash for the group and enabled the distribution of the RM792 million dividend in September 2023.
The board is declaring a final dividend of six sen per share for FY2023, which translates to RM144 million.
Combined with the RM792 million dividend already distributed, the total dividends for FY2023 amount to RM936 million, which has exceeded the targeted RM900 million excess cash distribution set last year.
“The good progress made this year on the monetisation of our inventories along with the appreciation of the GBP since 4Q2022 has enabled EcoWorld International to achieve higher total dividend distributions to shareholders of RM936 million for FY2023 as compared to our target of RM900 million,” said Datuk Teow Leong Seng, president & CEO of EcoWorld International.
“As at Oct 31,2023, the group still has approximately RM850 million of completed and nearly completed stocks that are available for sale. EcoWorld International’s effective share of these stocks is approximately RM650 million.
“With regard to all launches for the remaining sites, these will continue to be put on hold given the ongoing weak sentiment amongst homebuyers and significant cost inflation in the UK. We will consider proceeding with launches only when market conditions improve, cost pressures stabilise and expected returns that meet the group’s requirements can be forecast with greater certainty,” he added.
“As such, EcoWorld International’s target for FY2024 is to sell out all our remaining completed and nearcompleted stocks with the aim of distributing the excess cash generated back to our shareholders, net of the amounts required for the group’s pared down operational requirements,” Teow said.
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Source: EdgeProp.my
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