KUALA LUMPUR (March 20): EcoWorld International (EWI) recorded profit before tax of RM1.5 million in 1Q2024 compared to loss before tax of RM30.4 million in 1Q 2023.
EWI stated in a statement that this was 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 in 1Q2024 as opposed to foreign exchange losses recorded in 1Q 2023; and lower finance costs as a result of full settlement of all borrowings in 2023.
Revenue went up 41.6% to RM31.67 million from RM22.37 million previously driven by the sale of higher priced commercial units.
Following the distribution of RM144 million dividend during the first quarter of FY2024, the group still has a net cash balance of RM211 million as at Jan 31, 2024.
EWI also achieved RM243 million sales exchanges plus reserves of RM203 million adding up to a total of RM446 million for the first four months of FY2023.
Embassy Gardens, which brought in RM105 million sales, was the biggest contributor, followed by Wardian (RM75 million), and Yarra One (RM20 million).
“The group continues to make progress with the monetisation of inventories. As at Feb 29, 2024, we have approximately RM650 million of completed and nearly-completed stocks that are available for sale, of which the Group’s effective share is approximately RM500 million. Sales of completed stocks are estimated to generate excess cash up to RM500 million for the group over 2024 and 2025,” said Datuk Teow Leong Seng, president & CEO of EcoWorld International.
“The board intends to distribute the excess cash to shareholders and we are seeking for approval in our annual general meeting next week to undertake a second capital reduction exercise to enable such distribution,” he said.
“Recent data shows that London house prices continued to weaken. The persistent challenges of high living costs and elevated interest rates are dampening the demand from potential homebuyers. As such, all launches for the remaining sites continue to be put on hold, pending review of their feasibility in view of the ongoing weak sentiment among homebuyers and significant cost inflations. The decision to proceed with launches will be contingent upon an improvement in market conditions, stabilisation of cost pressures, and meeting the expected returns required,” added Teow.
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Source: EdgeProp.my
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