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MRCB records strong growth in H1 at RM1.28b

MRCB records strong growth in H1 at RM1.28b

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) announced that it recorded strong growth in revenue and profit before tax excluding disposal gains in the first half ended June 30, 2017. The property company announced on Tuesday that revenue in the first half of 2017 rose 55% to RM1.28bil.  Profit before tax, excluding gains of RM44.4mil arising from the disposal of non-core assets in the first half of 2016, rose 32% to RM63.4mil.

“These are very pleasing results. The strong growth in revenue was driven by a 110% rise in our engineering, construction and environment revenues. Our property development and investment division recorded a 29% increase in revenue, contributed by the award winning Sentral Residences and our Eastern Burwood Development in Melbourne.  “With these two key property development projects completed now, and new projects still in the early phase of construction, revenues this year will continue to be dominated by our Engineering, Construction and Environment division,” said Tan Sri Mohamad Salim Fateh Din, group managing director of MRCB. The property development division also recorded revenue and profits from its ongoing property development projects, namely the 9 Seputeh mixed development in Jalan Klang Lama, the office towers at PJ Sentral Garden City and Menara MRCB in Putrajaya and recurring income from its remaining investment properties in KL Sentral CBD and Shah Alam of RM5.9mil during the period. MRCB’s property projects, which are predominantly transit oriented developments (TOD), have a GDV of RM55bil.

MRCB’s engineering, construction and environment division’s revenue was also earned from the ongoing construction of MRCB Land’s property development projects, and the construction of several mixed commercial buildings for clients in Johor, power transmission related construction projects across Peninsular Malaysia and other civil engineering projects in the Klang Valley. Contribution from 50%-owned MRCB-George Kent Sdn Bhd, the project delivery partner (PDP) for the LRT3 line, was still very low but will show much stronger growth in the second half of the year as the project progresses. After RM409mil worth of recent contract wins, MRCB’s external client construction order book currently totals RM6.3bil.