Glomac FY12 profit jumps 36% on property sales

PETALING JAYA: Glomac Bhd announced a 36.2% jump in its financial year 2012 (FY12) net profit from RM62.98mil to RM85.78mil, attributable to the commendable sales of its prime mixed developments.

Its revenue for the 12-month period ended April 30 was 9.7% higher at RM655.61mil compared with RM597.48mil a year ago.

In its filing with Bursa Malaysia, the group said the improvement was due to “on-going sales and progressive recognition of development projects in Glomac Damansara, Bandar Saujana Utama, Saujana Rawang and Glomac Cyberjaya”.

In its press statement, Glomac elaborated that profits were anchored by Glomac Damansara, Glomac Cyberjaya and final billings from the completed Glomac Tower.

“Our total sales of RM663mil achieved in FY12 were higher than our internal target of RM500mil, driven by our prime mixed developments,” group executive chairman Tan Sri FD Mansor said.

He added that the launch of Glomac’s 39-storey Reflection Residences in March 2012 and the freehold serviced apartment project in Mutiara Damansara with a gross development value (GDV) of RM270mil received good response. The latter was 90% sold to date.

Moving forward, the group’s earnings growth will come from its record unbilled sales of RM731mil, alongside its pipeline of development projects with a total available GDV of about RM7bil.

Glomac has development landbanks of 200 acres in Sungai Buloh, adjacent to Bandar Saujana Utama and 192 acres in Dengkil for a new township project.

These projects are estimated to generate a GDV of RM800mil each.

Glomac is also proposing a final gross dividend of 2.75 sen per share less 25% tax for the financial year.

The total dividend paid for FY12 is 5.5sen, 4.75 sen higher than the previous year.

Meanwhile, Bernama reported that at an analyst briefing yesterday, group managing director and chief executive officer Datuk FD Iskandar Mansor said Glomac aimed to grow its market capitalisation to RM1bil from the current RM600mil in the next three years.

He said the growth would be underpinned by both merger and acquisition (M&A) exercise as well as organic growth. “To grow the market cap from RM300mil to RM600mil took us about two to three years. So we expect a similar timeline for this objective.

“However, the aim is still subject to the external economic factors and domestic demand,” he told reporters after the briefing.

By The Star