Affordable housing and integrated township developer Lagenda Properties Bhd (Lagenda) second quarter financial results for the ended June 30, 2021 (2Q2021) shows a surge in revenue by 1,530.9% to RM170.5 million.
Profit after tax (PAT) increased by 1,559.8% to RM42.9 million, mainly due to the acquisition exercises which were completed in August 2020.
However, revenue declined 25.4% quarter-on quarter as construction activities were delayed by one month as a result of the Full Movement Control Order which led to lower revenue recognition in 2Q2021.
“This is a temporary setback and the Group envisages to catch-up on construction progress as soon as possible. Correspondingly, PAT in 2Q2021 decreased by 22.8% when compared to the preceding quarter, being 1Q2021,” the group says in a statement.
Despite the lockdown, the Group secured stronger sales in 2Q2012 achieving total sales of close to RM700 million for the current financial year up to 30 June 2021.
Managing Director of Lagenda, Dato’ Jimmy Doh says the results were satisfactory despite the lockdown which delayed construction progress.
“Stronger sales in 2Q2021 demonstrated that demand is still robust for affordable housing. We are aiming to catch-up on construction activities in the coming months when the lockdown eases. In preparation for this and to safeguard the well-being of our people, 88% of our staff have been vaccinated which is in line with the Group’s goal to achieve 100% vaccination in the coming months.
“We believe our business model is highly scalable and we plan to expand our business blueprint outside Perak, across more states in Malaysia. Our immediate targets are Kedah, Pahang and Johor. As Lagenda continues to build more houses, we aim to achieve higher and better efficiency on every township as we replicate based on the previous framework.
“With our recent land acquisitions in Pahang and Johor, our total GDV is now circa RM9 billion which will ensure that we are able to launch one new township per year to deliver long term sustainable growth.”