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Widad slips into the red in 3Q as revenue slips 22%

2022-11-30T12:28:49+08:00November 30th, 2022|0 Comments

KUALA LUMPUR (Nov 30): Widad Group Bhd posted a net loss of RM919,000 for the third quarter ended Sept 30, 2022, compared to a net profit of RM6.88 million a year earlier, in line with a decrease in revenue.

The construction and integrated facilities management (IFM) group said quarterly revenue fell 21.67% to RM26.83 million from RM34.25 million, following completion of a contract for the provision of IFM services to Istana Negara.

“The IFM segment has to incur one-off costs in relation to facility condition audit, building condition assessment and upgrading works totalling RM1.57 million prior to hand over to client,” Widad said in its financial report filed with Bursa Malaysia.

For the nine-month period ended Sept 30, net profit increased 3.9% to RM12.82 million from RM12.34 million in the previous corresponding period, while revenue rose 55.38% to RM128.37 million from RM82.56 million.

Widad has not declared any dividends for the current financial year.

On prospects, Widad said the group is poised to continue its performance to-date, on the back of its strong order book worth approximately RM1.30 billion.

“Additionally, an ongoing corporate proposal to acquire 100% equity interest in Palm Shore Holdings Sdn Bhd will contribute positively to the group’s revenue and cashflow stream,” the group said.

Widad’s share price closed half a sen or 1.2% higher at 42 sen on Wednesday (Nov 30), valuing the group at RM1.16 billion.

Read also:Widad to expand facilities management business into defence industry via RM35m acquisition

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