KUCHING: Quality Concrete Holdings Bhd has plunged into the red with group net loss of RM2.44 million on revenue of RM209 million for financial year ended Jan 31, 2023 due mainly to impairment loss.
In the previous financial year, the company posted group net profit of RM4.45 million despite a slightly lower revenue of RM202.6 million.
In the current financial year, losses per share stood at 4.22 sen as compared to earnings per share of 7.67 sen previously.
“The management decided to provide impairment of RM2.5 million in stock and RM3 million in property, plant and equipment (PPE) in current financial year as a prudent measure in view of the market uncertainties and interruption in material supplies chain which has affected manufacturing activities,” Quality Concrete said in explanatory notes to its latest financials.
In the current financial year, the group revenue rose by RM6.4 million or 3.2 per cent to RM209 million against the previous financial year.
“The manufacturing segment has recorded revenue of RM63.6 million in the current period which represents a decrease in revenue of RM5.9 million recorded in the last financial year. This is mainly due to the revenue from pipes and timber products’ division which recorded lower revenue of RM5.7 million and RM4.6 million respectively while the ready mixed concrete products division recorded increase in revenue of RM4.8 million.
“The decrease in revenue of the pipes division was due to lower demand for its products as fewer water infrastructure projects were being rolled out by government whereas timber products division was facing shrinkage in exports due to rising freight costs worldwide.
“The increase in revenue of ready mixed division was supported by the increase in demand from private development projects and internal infrastructure project,” said Quality Concrete.
Reviewing the performance of the property development & construction segment, the company said it posted higher revenue of RM146.7 million as compared to RM135.9 million in the previous financial year, and thus contributed to the overall increase in group’s turnover in the current financial year.
Quality Concrete incurred group net loss of RM6.59 million against group net profit of RM882,000 recorded in fourth quarter in the previous year as revenue fell to RM47.2 million from RM49.4 million previously.
In fourth quarter of the current financial year, the group suffered a pre-tax loss of RM5.3 million from profit of RM3.2 million in the same quarter in the previous year. This include pre-tax loss of RM2.6 million recorded by the manufacturing segment and RM5.5 million in impairment loss as stated above. The property development & construction segment turned in pre-tax profit of RM2.8 million.
Commenting on the prospects of the next financial year, Quality Concrete said: “The group will continue its existing construction work orders in hand while at the same time taking measures to control costs from escalating.
“The management will shrink or close down unprofitable operation or business segment while exploring other revenue stream to strengthen the group’s financial standing. In the coming financial year, the group aims to achieve a positive result barring any unexpected event.”
Quality Concrete group’s other business segments are trading, quarry operation as well as investment & management services. In the current financial year, the trading segment recorded sales of RM1.84 million while the other two segments both recorded zero revenue.
