Full Release: Kuala Lumpur, 29 May 2019 – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company released their unaudited first quarter results for the financial period ended 31 March 2019 (“Q1 FY2019”) here today.
The Company recorded a 12.0% revenue increase to RM515.9 million compared to that of the same quarter in FY2018 which stood at RM460.8 million. UEM Edgenta also posted an 8.3% increase in PBT to RM46.0 million compared to the same quarter of FY2018, which was at RM42.5 million.
The increase in revenue for Q1 FY2019 is mainly attributed to the Company’s Asset Management segment, driven by the Healthcare Support division which posted a healthy 19.0% increase from new businesses secured in Malaysia, Singapore and Taiwan. The Healthcare Support division also posted a higher PBT at RM34.5 million, an increase of 19.3% compared to the same quarter of FY2018 which was at RM28.9 million. Recent contract wins include energy performance services at Hospital Kepala Batas (a government hospital which forms part of UEM Edgenta’s hospital support services concession with the Ministry of Health Malaysia),
Revenue growth in the Property & Facility Solutions division moderated in Q1 FY2019 on a Y-o-Y basis as a result of more projects completed in the same quarter of FY2018; however, the Company was able to preserve margins via operational cost efficiencies. The division recently secured the facility management for select WeWork co-working spaces in Singapore and Malaysia, as well as a large-scale fit-out project for Sime Darby Autocity.
Within the Infrastructure Services division, revenue improved to RM172.2 million, a 13.3% Y-o-Y increase compared to FY2018 revenue of RM152.1 million. The revenue derived from this division was mainly due to higher volume of work done on pavement works and traffic management for expressways. However, PBT growth was offset by further operational costs incurred for the new Pavement Research Centre (“PRC”), an investment which is part of the Company’s strategy to service the entire lifecycle value chain. Recently it secured the pavement works for Lebuhraya Pantai Timur 2 and the Karak Highway.
The Asset Consultancy division recorded a slight dip in revenue at RM35.0 million compared to Q1 FY2018 which was at RM35.4 million, due to more projects being completed during this Q1 FY2019 period.
According to MD/CEO of UEM Edgenta Berhad, Dato’ Azmir Merican, the Company’s Q1 FY2019 results have set the pace for the rest of the financial year.
“We are steadily paving the way for continuous growth in the Company by focusing on the rollout of our continuous improvement programmes, which are envisioned to lead to increased operational efficiencies, training and upskilling of our staff, as well as introducing innovative technologies, all of which will add to our cost saving strategies. This will further strengthen our businesses against any operational headwinds faced by the potentially challenging market environment for the rest of FY2019,” said Dato’ Azmir.
He further stated that organisational excellence will also be a focus in FY2019, where UEM Edgenta will continue to emphasise on the development of its human talent which will help drive its performance culture.
For the remaining period of FY2019, the Company’s Asset Management segment, underpinned by the Healthcare Support division will continue to look to secure more contracts in the region, as well as sharing and implementing best practices between the concession and commercial arms of this division.
UEM Edgenta also continues to be optimistic of its prospects in the Infrastructure sector, given the State and Federal authorities’ commitment towards the implementation of several key infrastructure projects. The potential of creating new and better products through the PRC is also part of the Company’s strategy in providing in-house solutions with innovative technologies to increase its value proposition to clients.