MGB Berhad, a subsidiary of LBS Bina Group Berhad, which is involved in construction and property development, today reported its first quarter results for the financial year ending 31 December 2021 (Q1FYE21).
MGB reported a revenue and a profit after tax (“PAT”) of RM167.6 million and RM10.1 million respectively. In comparison to Q1FYE20, the revenue and PATAMI were 10.3 percent and 371.4 percent higher respectively.
As opposed to a pandemic free quarter in the preceding year, MGB managed to post a 170 percent surge in profit before tax (“PBT”) to RM13.7 million, reversing the trend where the first quarter of the two preceding years experienced lower PBT, year-on-year.
The construction and trading business segment was the Group’s main earnings contributor. The segment’s PBT increased to RM13.0 million as compared to Q1FYE20’s RM1.3 million.
Relaxation of the movement control order’s various phases, which MGB swiftly reciprocated by ramping up its construction activities, coupled with the Group’s discipline in project cost management were the main contributors behind this 9-fold leap in PBT.
MGB Group Managing Director Tan Sri Dato’ Sri Lim Hock San said, “The manner in which MGB braves through this pandemic merely exhibits how we overcome obstacles, like any other obstacles previously faced by us.”
“We just need to be adaptable when faced with various challenges over time. This is just part and parcel of running a construction business. We have been in this business for decades now and are able to mitigate undesired situations,” he added.
“The team is working to ensure that the projects, in particular over 7,000 units of Rumah Selangorku Idaman, will be delivered on schedule and in good condition. Aside from this, we are determined to grow and optimise our construction segment via our in-house Industrialised Building System (“IBS”). We have seen higher orders at our two IBS plants in Nilai and Alam Perdana and are optimistic there are more to come. MGB is well-positioned to capitalise on building affordable housing using our own IBS,” he said.