Friday, December 30, 2011

Cypark 4Q earnings dn 21.5% to RM4.11m on-year

KUALA LUMPUR (Dec 30): Environmental TECHNOLOGY [] and engineering specialist CypARK RESOURCES BHD []'s earnings fell 21.5% to RM4.11 million in the fourth quarter ended Oct 31, 2011 from RM5.24 million a year ago due to lower profit margins then the previous quarter.

It said on Friday the group's gross profit margin was 25%, a decline from the 36% a year ago when it benefited from design income fee and good material rate negotiated in the quarter.

'The decrease in gross profit margin is however offset by significant savings in finance cost in current quarter. This has resulted in profit margin before taxation for current quarter to decease only by 8% to 17% in the current quarter as compared to 23% in the previous year's quarter,' it said.

Revenue rose 14.7% to RM42.41 million from RM36.95 million while earnings per share were 3.0 sen versus 4.0 sen.

In the financial year ended Oct 31, Cypark reported an 8.3% increase to RM21.98 million from RM20.29 million. Revenue declined by 9.2% to RM161.21 million from RM177.55 million.

The company's profit margin after tax and after comprehensive income for the current financial year has also improved significantly to 14%, compared to 11% in the previous financial year.

Its chairman and founder Tan Sri Razali Ismail said: 'With the stable and repetitive income flow expected to come from our renewable energy business starting early next year, Cypark will be blessed with even more sustainable business.'

Razali added that he was very positive with the company's bright prospect in 2012.

'The market growth for solid waste management services is driven by recent the implementation of Solid Waste Management Act in September 2011. With the increasing waste output of Malaysia's population, the group expects to benefit from government projects earmarked under the 10th Malaysia Plan,' he said.

Razali also said Cypark would be able to tap into the various attractive initiatives offered by the government under the National Renewable Energy Act and with the implementation of the Sustainable Energy Development Authority.


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