Integrated Facilities Management service provider, GFM Services Berhad has posted a net profit of RM8.4 million as compared to RM5.9 million in the prior year (“FY2019”), on the back of contribution from new contracts secured and lower project as well as operating costs.
Gross profit margin also expanded to 40 percent from 35 percent in the previous year. Group revenue stood at RM116.9 million in FY2020.
In 2020, GFM has successfully secured several new contracts, namely to manage facilities within the education hub, EduCity Iskandar Malaysia located in Iskandar Puteri, Johor, as well as to provide operations and maintenance (“O&M”) services at the Pengerang Integrated Complex (“PIC”) in Pengerang, Johor.
The FM business generated revenue of RM82.4 million in FY2020, making up 71 percent of the Group’s revenue, while the Concession Arrangements segment accounted for 29 percent worth RM34.4 million, after consolidation adjustment.
For the quarter under review, GFM turned a net profit of RM3.2 million during the quarter, from a net loss position in the preceding year’s corresponding quarter (4QFY19).
The earnings turnaround was mainly attributable to reduced operating costs and contribution from the O&M project at PIC, Pengerang, which carries a higher profit margin. Group revenue increased 33 percent year-on-year (“YoY”) to RM32.3 million in 4QFY20, against RM27.2 million in 4QFY19.
Ruslan Nordin, Executive Vice Chairman of GFM said, “For our FM segment, we have successfully secured two new projects in 2020 despite subdued market sentiment. Our outstanding orderbook as at Dec 31, 2020 amounts to RM1.2 billion. As we move ahead, we remain steadfast on expanding our portfolio by bidding for more FM jobs in the private and public sector.”
“GFM registered a solid performance in FY2020, despite the impact of the Covid-19 pandemic and its resultant containment measures. Our focus has always been, first and foremost, to create a safe and conducive work or living environment for our customers with minimal disruptions. This commitment is even more reflective during the pandemic as we continued to serve our customers in adherence to the government’s standard operating procedures (“SOP”) with a focus on cleanliness and safety.”
“As we enter 2021, we remain focused on strengthening our competencies and scaling our operations. As a FM specialist, we need to be flexible to respond to changes. Our commitment to serve our customers has always been our main agenda and we will continue to adapt and evolve with changing needs and demands moving forward.”
“Meanwhile, we continue to provide FM services at Universiti Teknologi Mara (“UiTM”) Mukah until the end of the concession tenure in 2035 for our Concession Arrangements segment. As we endeavour to expand the Group, we are exploring opportunities that grow our recurring income streams and scope of services. In view of the Covid-19 outbreak, we have witnessed the importance of having a recurring income stream to mitigate the risks during an economic downturn.”
“In this regard, we are in the midst of acquiring up to 70 %-stake in Amzass (M) Sdn Bhd, a company that is authorized to upgrade existing facilities into a rest and service area of the Northbound and Southbound Bemban lay-bys in the state of Melaka, located along the PLUS North-South Expressway,” he added.
