BINA PURI MARKS TURNAROUND AFTER 16 QUARTERS OF LOSSES WITH NET PROFIT OF RM14.38 MILLION
Group on strong footing following completion of creditor scheme and is now looking to replenish orderbook
KUALA LUMPUR, 31 MAY 2024 — Bina Puri Holdings Bhd (“Bina Puri” or “Group”) has completed a turnaround of its financial performance with a net profit of RM14.38 million for the third quarter ending March 31, 2024 (“Q3FY24”), after sixteen consecutive quarters of losses, predominantly contributed by its construction segment.
During the same quarter of the 2023 fiscal year, the Group recorded a net loss of RM16.81million. Q3FY24 revenue also increased 57.68% year-on-year to RM49.63 million.
On a nine-month basis, Bina Puri has narrowed its net losses to RM11.15million from RM54.31million previously. Revenue has also increased 39.9% to RM136.62 million over the same period.
The improved performance of the Group was mainly driven by the positive impact of the proposed scheme between Bina Puri Sdn Bhd (BPSB), a wholly-owned subsidiary of the company, and its scheme creditors. This scheme was approved by the High Court of Malaya on January 24, 2024 and it was necessary for the Group to restructure its finances and revive its financial situation.
The sluggish construction activities and a weak property market climate brought on by severe disruption to the overall operating environment caused by the implementation of the movement control order (MCO) have significantly impacted the Group’s financial performance in recent years.
For perspective, in the 2020, 2021 and 2022 financial years, the construction division reported losses before tax of RM39.2 million, RM49.7 million and RM33.3 million, contributing to the Group’s net losses of RM10.4 million, RM62.4million and RM71.9 million, respectively.
The completion of this creditor scheme is now reflected in Bina Puri’s latest results. For the nine months to March 31, 2024, the construction sector recorded a loss before tax of RM10.57 million, a substantial improvement from the loss of RM64.49 million it recorded in the same period a year ago.
Bina Puri’s core businesses comprise construction, property investment and development, quarry operations and power supply.
“After years of losses due to the lacklustre construction sector and the previous financial woes, the worst is over and the outlook for the industry appears much brighter, underpinned by the strong pipeline of jobs both in the public and private sector,” said Group MD Kevin Chai. “We have successfully completed One Jesselton, Kota Kinabalu and 1Puri Commercial Centre, Kuching in the second half of the financial year 2024 and our focus remains on the completion of ongoing projects in a timely and efficient manner. We are also actively seeking out new business opportunities, not just to achieve financial stability and replenish our orderbook, but also to rebuild and revive Bina Puri as the construction and infrastructure behemoth that it once was.”
Looking ahead, Chai expects the construction segment to perform satisfactorily. The Group will continue to exercise prudence in business dealings and implement various measures to improve operational efficiency, aiming to achieve financial stability and sustainability across its businesses.
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