KUALA LUMPUR: GADANG HOLDINGS BHD [] cautioned that it sees a more challenging year moving forward with the tendering process getting more competitive with lower operating margins after it slipped into the red for the financial year ended May 31, 2011.
The company said on Thursday, July 28 that it posted a net loss of RM9.36 million in the fourth quarter ended May 31 compared to net profit RM3.56 million in 2010, while revenue dipped to RM71.35 million from RM78.31 million.
For the financial year ended May 31, Gadang posted net loss RM4.25 million compared to net profit RM14.87 million in 2010, despite revenue increasing to RM348.32 million from RM270.45 million.
Reviewing its performance, Gadang said the loss was due to higher operating cost in project execution, and poor margin recognised by its CONSTRUCTION [] division.
Gadang also said it recorded bad and doubtful debts and impairment of goodwill of RM11.15 million for the financial period under review.
On its prospects, Gadang said that in view of the challenging market environment going forward, it would focus on projects that could provide adequate margins and stable cash flow.
'Barring unforeseen circumstances, the group expects an improved performance in the next financial year,' it said.
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The company said on Thursday, July 28 that it posted a net loss of RM9.36 million in the fourth quarter ended May 31 compared to net profit RM3.56 million in 2010, while revenue dipped to RM71.35 million from RM78.31 million.
For the financial year ended May 31, Gadang posted net loss RM4.25 million compared to net profit RM14.87 million in 2010, despite revenue increasing to RM348.32 million from RM270.45 million.
Reviewing its performance, Gadang said the loss was due to higher operating cost in project execution, and poor margin recognised by its CONSTRUCTION [] division.
Gadang also said it recorded bad and doubtful debts and impairment of goodwill of RM11.15 million for the financial period under review.
On its prospects, Gadang said that in view of the challenging market environment going forward, it would focus on projects that could provide adequate margins and stable cash flow.
'Barring unforeseen circumstances, the group expects an improved performance in the next financial year,' it said.
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