Vizione’s 1st Quarter Earnings Soar
Main board-listed Vizione Holdings Berhad (“Vizione” or “the Group”), announced today that it posted higher earnings and revenue for the first quarter ended August 31, 2018 (“Q1FY2019”), owing to ongoing major infrastructure projects.
For the quarter in review, the Group’s profit after tax (PAT) rose 36% or RM3.98mil to RM15.02mil from RM11.05mil in the previous quarter, a year ago (Q4FY2018), on the back of a 44.09% increase in revenue to RM159.51mil in Q1FY2019 from RM110.70mil in Q4FY2019. The group’s profit before tax also rose 34.49% to RM20.57mil during the period.
With the better performance, the Kuala Lumpur based integrated construction outfit is on track to fulfil the RM82.6mil profit guarantee from the acquisition of Wira Syukur (M) Sdn Bhd (“WSSB”). WSSB registered a PAT of RM28.6mil for FYE2017 and based on the profit guarantee, the company is required to deliver a PAT of RM54.0mil from January 1 to December 31, 2018.
Meanwhile, from December 1, 2017 to August 31, 2018, Vizione booked a PAT of RM34.1mil, which brings the outstanding amount to about RM20mil. With the projects it recently secured, namely the RM815mil Penang Mega Infrastructure Project Package 2 and Submarine Pipelines Project worth RM89.9mil, Vizione is confident that it would deliver the profit guarantee.
The Group’s balance sheet remains resilient with a current ratio of 1.80 times and net cash of RM19.38mil. To date, the Group has an outstanding order book of approximately RM3.3bil that would contribute to earnings visibility up to 2022.
Additionally, the group had completed the seven-to-one share consolidation exercise on October 15, 2018 to reduce excess liquidity. With the corporate exercise, the number of shares has been reduced from 3.91 billion to 558.77 million. The group believes the move will inevitably raise Vizione’s profile and put it on investors’ radar.
Vizione’s Managing Director, Dato’ Ng Aun Hooi commented, “Despite the challenges seen in the construction industry, we have somewhat continued the momentum in delivering good financial results. That said, we are confident and well poised to ride through hurdles by managing operational risks and maximising resources in hand. We will also continue to see great opportunities in the wake of the new government’s fiscal policy in building more affordable homes in the short to medium term, as reflected in their manifesto to construct one million affordable houses within two terms of administration. On that note, the Group has been working on selective jobs with manageable risks that aligns with its business strategy.”
“Additionally, we will continue to expand our regional footprint and position our capabilities to undertake work in our new business segments, namely civil engineering and infrastructure works. These new segments are expected to benefit us in the near and longer term, as the market propels through increasing levels of activities. Moving forward, the Group expects the Government to roll out incentives to drive and promote the construction industry that could further stimulate the economy. With our healthy balance sheet and net cash position, as well as strong outstanding order book of RM3.3bil, we expect to continue the performance, meeting the expectations of shareholders and stakeholders alike.” he added.