Full Release: Kuala Lumpur, 25 February – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company announced its unaudited fourth quarter results (“Q4”) and for the full financial year ending 31 December 2020 (“FY2020”) here today.

Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta said, “We demonstrated our resilience during the pandemic by continuing to win key contracts in healthcare support services in Malaysia, Singapore and Taiwan, as well as focus on prudent cash flow and resource management. We continue to assess strategic initiatives to sustainably grow our results through new products and technology solutions, as well as driving further efficiencies in our operations this year against the backdrop of a fast-evolving and volatile economy.”

Q4 FY2020 Results
For the period under review, UEM Edgenta registered revenue of RM607.3 million; an increase of 26% against the preceding quarter at RM482.9 million. Gross profit for the same period also recorded a recovery of 105.6% on a quarter-on-quarter basis to RM107.9 million from RM52.5 million in Q3 FY2020. Correspondingly, Profit Before Tax (“PBT”) and net profit for Q4 FY2020 are recorded at RM57.1 million and RM49.5 million respectively.

FY2020 Full Year Result and Performance
Excluding the one-off RM50.0 million impairment undertaken in the first half of FY2020 as part of the Company’s efforts to restructure and rationalise non-core businesses compounded by the challenging global economy, UEM Edgenta registered normalised net profit of RM64.9 million on the back of RM2.0 billion revenue, as compared to RM188.0 million and RM2.4 billion respectively in FY2019. As at 31 December 2020, UEM Edgenta’s balance sheet remained healthy with a low gross gearing ratio of 0.32 times, strong net cash position and bank balances of RM206.1 million.

Business Divisions’ Performance
Throughout FY2020, the Company’s Healthcare Support division has been playing a proactive role in supporting national COVID-19 recovery efforts across the region, where it presently serves over 300 hospitals in Malaysia, Singapore, Taiwan and India. Despite facing challenges in the current operating environment including macroeconomic uncertainties and higher operational costs exacerbated by the pandemic, the division is focused on protecting its margin as it reported quarterly revenue and profit growth in Q4 FY2020, of RM350.3 million and PBT of RM55.9 million, as compared to RM319.7 million and RM11.8 million respectively in Q3 FY2020.

For FY2020, the division reported higher year-on-year revenue growth supported by key contract wins from both Commercial and Concession businesses valued at RM1.0 billion, which include, in Malaysia, biomedical equipment upgrading and maintenance contracts from the Ministry of Health and Sarawak General Hospital; Housekeeping and portering services for Sengkang and Changi General Hospital in Singapore; and in Taiwan, cleansing, housekeeping and portering services for Cheng Hsin General Hospital and Yang Ming University Hospital. For the year under review, the Company’s Healthcare Support division recorded a revenue of RM1.23 billion and PBT of RM95.4 million.

In Q4 FY2020, Property & Facility Solutions (“PFS”) division recorded revenue of RM51.2 million and loss before tax of RM0.6 million. For FY2020, PFS registered revenue of RM154.0 million and PBT of RM13.1 million. The division has gained traction during the year under review by securing new contracts, which include facilities management contracts for CIMB branches and maintenance services for Universiti Teknologi Petronas’ District Cooling Plant.

UEM Edgenta’s Infrastructure Services division recorded a respectable performance in both revenue and PBT at RM172.6 million and RM13.3 million respectively in Q4 FY2020. For the year under review, the division registered revenue of RM550.3 million and PBT of RM39.6 million. The Company’s Asset Consultancy division had also registered profit growth in Q4 FY2020 versus Q3 FY2020, recording PBT at RM2.8 million for the period. For the year under review, the division recorded revenue of RM91.9 million and PBT of RM8.0 million.

Outlook for FY2021
Despite facing challenges in the current operating environment, UEM Edgenta closed the year with a healthy orderbook across all its business divisions, with RM12.2 billion work-in-hand as at end FY2020. As UEM Edgenta continues to build on the momentum from the Q4 FY2020 results, the Company’s management remains focused on delivering and optimising the projects secured in the healthcare and infrastructure sectors, which it predominantly operates in. Additionally, the Company is currently undertaking a strategic review of its business units and corporate structure as part of its proactive measure to drive synergistic cost savings and efficiency gains across business functions.