PROPERTY developer SP Setia Bhd posted a 35.6 per cent lower net profit of RM31.2 million for the first quarter ended January 31 2009, due to slower property sales as a result of the global economic crisis.
"Sales during the first quarter was very weak due to the extreme caution exercised by potential purchasers in the light of the unending flow of bad economic and financial news," the group said in a statement to Bursa Malaysia.
SP Setia acknowledged that 2009 will be a challenging year for the company in view of the ongoing global financial turmoil, although it is in a strong financial position with RM572 million cash in hand.
As part of its effort to drive sales, the property developer introduced the SP Setia 5/95 Home Loan Package, where buyers only pay 5 per cent upon signing the sales and purchase agreement and nothing more until completion.
Since its launch on January 19, the group has made RM300 million in sales and is optimistic that the package will continue to spur sales during the three-month promotional period.
Meanwhile, revenue for the first quarter dropped to RM259.9 million against RM303.7 million posted during the same period a year ago.
By Business Times
Friday, March 20, 2009
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