Ireka’s order book surpasses RM1b mark

KUALA LUMPUR: Ireka Corporation Bhd has achieved the RM1 billion mark for its construction order book, which will keep it busy through 2011, the company said yesterday.

In a statement issued in conjunction with its 32nd AGM here, Ireka said at RM1.13 billion, its order book included luxurious condominium projects in Mont’ Kiara, namely Tiffani by i-ZEN and SENI Mont’ Kiara; integrated offices and retail mall, One Mont’ Kiara and the Sandakan Harbour Square urban renewal project.

Ireka said the outstanding order book currently stood at RM950 million.

Ireka chairman Abdullah Yusof said the company was beginning to see a positive turnaround in its focus to be an asset-light construction and property development player. It recently announced a dividend policy to distribute at least 40% of its net earnings to its shareholders.

For the year ended March 31, 2008, the group recorded a net profit of RM152.9 million on the back of a RM299.7 million revenue. The FY08 earnings included a one-off gain of RM206 million arising from the disposal of two property companies.

In the first quarter to June 30, 2008, Ireka posted a net profit of RM3 million on the back of a RM62.9 million turnover.

Abdullah said the company would continue to focus on Malaysia and Asia, specifically Vietnam, for its construction and property development activities.

“The rising building material costs and external pressures are felt by most industry players, but the group has taken an astute approach in value-engineering technique for its construction activities and become more selective in the projects that we undertake,” he said.

Ireka has a 19.6% stake in Aseana Properties Ltd, which was listed on the Main Board of the London Stock Exchange on April 5, 2007. Aseana has appointed Ireka unit Ireka Development Management Sdn Bhd as its exclusive development manager, responsible for the day-to-day management of its property projects in Malaysia and Vietnam.

By The EDGE Malaysia