Saturday, May 28, 2011

L&G in the red in 4Q, FY earnings fall 65%

KUALA LUMPUR: Land & General Bhd posted losses of RM3.22 million in the fourth quarter ended March 31, 2011 compared'' with net profit of RM12.91 million a year ago mainly due to losses in quoted investments.

'The loss for the current quarter arose mainly due to'' fair value loss of RM3.5 million recognized on its quoted investments, net interest expenses of RM1.1 million recognised from FRS 139 implementation, and share of losses from its jointly controlled entities of RM1.7 million,' it said.

L&G said the high profit in 4Q 2010 was mainly due to the recognition of exceptional income of RM10.1 million and the share of profit from its jointly controlled entities of RM1.5 million arising from the profit recognition on its development of residential lots in Australia.

It said revenue which higher at RM15.78 million in 4Q 2011 compared with RM6.11 million a year ago, loss per share at 0.54 sen versus 2.16 sen a year ago.

For FY ended March 31, 2011, it was still profitable at RM10.21 million, but down 65.5% from the RM29.68 million in FY March 2010. Revenue was RM44.20 million, up 33% from RM30.21 million.

'The higher profit posted in the preceding year (FY ended March 31, 2010) were mainly from the recognition of exceptional income of RM26.7 million,' it said.

L&G explained there was a foreign exchange gain realized from the capital distribution of its foreign subsidiary of RM11.0 million, gain from disposal of its asset classified as held for sale of RM3.3 million and write back of impairment loss on its investments of RM8.8 million and provision for doubtful debts no longer required of RM2.1 million.

'In the current financial year, the share of losses from its jointly controlled entities of RM1.7 million, mainly due to the impairment loss of certain investments and interest costs on FRS 139 implementation, was offset by the net fair value gain on its quoted investments of RM4.8 million,' it said.

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