Building and infrastructure construction services provider, TCS Group Holdings Berhad has announced its first quarter (“1QFY2020”) unaudited consolidated financial results today for the financial period ended (“FPE”) March 31, 2020.
TCS registered a profit after tax of RM5.07 million on the back of RM62.69 million revenue in 1QFY2020. Approximately 97.32 percent or RM61.01 million was from the residential segment while the commercial segment contributed the remaining 2.68 percent or RM1.68 million. Gross profit stood at RM11.03 million in 1QFY2020, translating into a gross profit margin of 17.59 percent.
On its financial position, TCS is in a net cash position of RM14.37 million as at 31 March 2020 with gearing ratio of 0.45 times. It also recorded a net cash inflow from operating activities of RM8.82 million for the FPE March 31.
There are no comparative figures for the preceding corresponding quarter and period as this is the first interim financial report made available in conjunction with its upcoming initial public offering (“IPO”) exercise on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
Commenting on the financial performance,Managing Director of TCS Group, Tee Chai Seng said, “We are off to a good start with a healthy set of results in 1QFY2020. During the first quarter, we were busy with our ongoing high-rise residential construction projects that include Hermington, Tropicana Urban Homes and Suria Pantai.”
“As at April 30, TCS’ outstanding orderbook stood at RM463.81 million, which will contribute progressively to the Group’s revenue for the next three financial years up to financial year ending Dec 31, 2023. As at May 31, 2020, we were in the running for 10 projects which we have tendered for with a total contract value of RM2.13 billion. If awarded, these projects will contribute positively to our financial performance. We are confident that TCS’ prospects in the building construction industry remain favourable, backed by the implementation of various government measures and economic stimulus packages to strengthen the Malaysian economy, our competitive strengths and continuous efforts in expanding our services and capabilities,” he added.
“Looking ahead, we aim to continue to expand our services to include more building construction projects, such as high-rise, purpose-built buildings. In addition, we also intend to expand our infrastructure construction services and will form a new project team for this expansion. To support our expansion plans, we will acquire machinery and equipment such as trucks, excavators and tower cranes, to name just a few. The proceeds raised from the IPO will certainly help accelerate the execution of our future plans,” he concluded.
TCS is scheduled to be listed on the ACE Market of Bursa Securities on July 23. Upon listing on the ACE Market of Bursa Securities, TCS will have a market capitalisation of RM82,800,000 based on the issue price of RM0.23 per share and an enlarged total number of 360,000,000 shares.
RHB Investment Bank is the Sole Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for the IPO exercise.