DBHD'S NET PROFIT JUMPS 9.4 PCT IN FY18

KUALA LUMPUR, Feb 20 (Bernama) -- Damansara Realty Bhd (DBhd) posted a 9.4 per cent jump in net profit to RM19.5 million for the financial year ended Dec 31, 2018 (FY18), driven largely by strong organic growth in its integrated facilities management (IFM) segment.

DBhd’s revenue for the year jumped 21.9 per cent to RM304.13 million from RM249.48 million in the previous year. 

After adjusting for a one-off expenses incurred for corporate exercises last year, its operational profit jumped more than 300 per cent to RM20.67 million in 2018, against RM6.57 million in 2017.

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DBhd reported non-recurring other income of RM27.21 million in 2017, largely arising from its Johor property development projects, compared to RM5.99 million in 2018.

"The strong rise in our recurring income is an attestation of our own ability to generate better quality earnings built on healthy organic growth, as we continue to shift our business focus to high-growth markets and higher-margin projects,” said DBhd's group managing director, Brian Iskandar Zulkarim in a statement today.

He added that having a range of recurring income streams had buffered the impact of the soft property market, with IFM being the main driver of sustainable profit and organic growth. 

“Moving forward, we will be focusing on expanding our IFM capabilities in technology and innovation, to enable our customers to improve efficiency, productivity and automation, while managing rising manpower costs,” said Brian.

DBhd has been systematically streamlining its operations to optimise resources and capital to generate better margins and returns, exiting niche markets and low margin operations.

At the same time, it is expanding its project management and consultancy segment by pairing it with the property and land development segments to target specialised projects such as hospital and medical centre development.

For the fourth Individual quarter ended Dec 31, DBhd saw a net profit of RM14.88 million on revenue of RM82.3 million.

-- BERNAMA