Talam's 4Q net profit falls 76%

KUALA LUMPUR: TALAM CORPORATION BHD 's net profit fell 76% to RM4.54 million in its fourth quarter ended Jan 31, 2010 (4QFY10) from RM19.09 million a year earlier mainly due to a reversal in its finance cost upon the completion of its restructuring and settlement of debts under a regularisation plan.

Revenue fell 49% to RM72.88 million from RM143.91 million while earnings per share (EPS) dropped to 0.23 sen from 2.97 sen.

For the full year, Talam's net profit fell 88% to RM7.09 million from RM59.11 million a year earlier. Revenue fell to RM250.98 million from RM301.28 million while EPS declined to 0.36 sen from 9.39 sen. No dividend was declared.

It said revenue had fallen on the back of lower progress billings generated from its development projects, adding it would continue to complete its outstanding developments and continue to dispose of land and properties that exceeded its requirements.

Talam also said it would apply to Bursa to lift its Practice Note 17 (PN17) status "soon" as its last few defaulted loans with its lenders had been settled.

Meanwhile, KUMPULAN EUROPLUS BHD (KEuro), which is 25%-owned by IJM CORPORATION BHD, posted a net loss of RM5.3 million in its 4Q versus a net profit of RM3.83 million a year earlier. IJM also has a 26.73% stake in Talam.

This came following a significantly smaller share of results of associates at RM1.05 million for FY10 from RM11.38 million.

Revenue was slightly higher at RM10.18 million from RM8.37 million a year earlier, which was offset by higher sales costs. Loss per share was 1.10 sen from 0.80 sen previously. No dividend was declared.

For the full year, KEuro posted a net loss of RM33.08 million versus a net profit of RM11.24 million in the previous year. Revenue was 5% lower at RM41.57 million from RM43.95 million previously while loss per share was seven sen from earnings per share of 2.4 sen. No dividend was declared.

It posted a pre-tax loss of RM33.72 million versus a pre-tax profit of RM10.81 million in FY09 due to exceptional impairment of leasehold land, provision for liquidated and damages claimed by clients for previous projects, and a RM19.79 million loss from its partial disposal of investment in Talam which was mitigated by a RM37.07 million gain from a debt purchase transaction.

Shares of Talam closed flat on Thursday, March 25, at 12.5 sen, while IJM closed eight sen higher at RM4.77. Meanwhile, KEuro lost 0.5 sen to close at 46 sen.

By The EDGE Malaysia