Malaysian Resources Corporation Berhad (MRCB) recorded Revenue of RM475.0 million and Profit Before Tax of RM18.2 million in the first half of 2019 citing revenue and profits being impacted by the Group’s newer property development projects that are still being at the early stage of construction.
This occurred when revenue and profit recognition is minimal and income from the LRT3 Project being deferred is a result of it being remodelled from a PDP to a fixed price turnkey project.
Commenting on the results, Imran Salim, Group Managing Director of MRCB said, “Although we have unbilled property sales of RM 1.8 billion, as a high-rise developer our ability to book revenue and profits hinges on construction progress.
Although construction is progressing well at our Sentral Suites and Carnegie Development in Melbourne, these key projects will not begin contributing significantly to profits until next year, when we also expect the pace of revenue and profit recognition from the LRT3 project to increase”.
The Property Development & Investment Division recorded a Revenue of RM156.4 million and Operating Profit of RM47.0 million in the first half of 2019. The lower revenue and operating profits were due to no revenue being recognised from the sale of completed unsold units which had yet to reach Sales and Purchase completion, as well as the Group’s key high-rise residential development projects currently being in the early phase of construction.
The Division sold RM244.2 million worth of properties during the period, lifting its unbilled property sales to RM1.8 billion, from RM1.6 billion at the end of the first quarter of 2019. These unbilled sales will be recognised as revenue progressively until the construction completion of the projects, and after the Sales and Purchase completion for all completed units sold.
The Group’s investment holding in MRCB-Quill REIT also contributed income of RM8.6 million during the period versus RM9.5 million in the corresponding period last year.
Image source from The Sun Daily