UEM Edgenta Records A Strong Start To 2018, Registers 34.0% Growth In Profit After Tax

May 24, 2018 Press Release No Comments

KUALA LUMPUR, 23 May – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), a leading Total Asset Solutions company commenced its 2018 financial year (“FY18”) with a strong set of first quarter (“Q1 FY18”) financial results as compared to the same quarter in the preceding year, largely driven by growth in revenue and profitability across all its core sectors, namely Healthcare, Infrastructure and Real Estate.

Q1 FY18 revenue rose to RM460.8 million, which was 10.5% higher as compared to Q1 FY17. This was mainly attributable to higher revenue from new contracts in the commercial healthcare services sector and additional work secured for highway maintenance services. Healthcare and Infrastructure sectors continue to be the major contributors for the group’s revenue.

Profit before tax (“PBT”) grew to RM42.5 million in Q1 FY18, up by 30.6% against RM32.5 million in Q1 FY17, driven by higher revenue as well as better margin expansion. Correspondingly, profit after tax (“PAT”) increased to RM30.5 million, which is higher by 34.0% as compared to Q1 FY17.

As at 31 March 2018, gross gearing ratio stood at 0.39 times with borrowings of RM558.3 million. However, the Company is in a net cash position of RM86.0 million after taking into account short-term investments of RM194.0 million and cash, bank balances and deposits of RM450.3 million.

Managing Director/Chief Executive Officer, Dato’ Azmir Merican commented: “We are pleased with our financial achievement recorded in the first quarter of FY18. Our strategy of consolidating and strengthening our core sectors has started to yield results as evidenced by improvements in both revenue growth as well as profit margins. We remain optimistic of our prospects in all the sectors we operate in as well as our ability to maintain the growth momentum for the rest of 2018 based on our positive first quarter performance.”

“While we are focused on securing new businesses, all efforts are also underway to improve our operational and organisational excellence, with the use of technology and innovation enablers. This will help us to deliver better margins and profitability moving forward.”

UEM Edgenta’s strong track record will allow it to maintain its position as a leader in this field and capitalise on new business opportunities. Over the years, the Company has demonstrated its capability in assisting a wide range of public and private sector clients improve their assets’ operational efficiency and increase financial returns on investments in their assets, while at the same time providing an enhanced end-user experience.

This is evidenced by the fourth consecutive year of UEM Edgenta’s Healthcare Services division receiving the prestigious ‘Enhanced Clean Mark Accreditation Scheme (Gold) Award’ from the National Environment Agency of Singapore. The award was conferred in May 2018 and it recognises companies which deliver high standards of cleaning services through the training of workers, use of equipment to improve work processes and fair employment practices.

In the Infrastructure sector, with its 28 years of experience, UEM Edgenta has consistently been at the forefront of the highway maintenance industry. The Company undertakes network management and maintenance of over 2,500 km of expressways and state roads across Malaysia and Indonesia; in particular the North-South Expressway which is maintained in compliance to the high standards as prescribed by the Malaysian Highway Authority.

The Company recently unveiled an enhanced dividend policy of at least 50% and up to 80% payout ratio based on profit after tax and non-controlling interests, representing an increase as compared to the previous policy’s payout ratio of up to 70%. The favourable announcement sets the tone of future dividend payouts, which is further supported by the encouraging financial results in Q1 FY18.