Building and infrastructure construction services provider, Nestcon Berhad which got listed in June this year, has posted a revenue of RM84.8 million and gross profit of RM7.1 million for its second quarter translating into a healthy gross profit margin of 8.4%.
With the construction sector facing headwinds and mostly held back due to MCO and Covid-19, the company managed to receive encouraging revenue contribution from its building division, which accounted for 73.6% of total revenue or RM62.4 million, while the remaining 26.4% or RM22.4 million was derived from the civil engineering and infrastructure segment. After incurring a one-off listing expenses of approximately RM1.9 million, the absence of which would have yielded an adjusted profit before tax of RM4.0 million versus the reported PBT of RM2.1 million.
For the cumulative six-month period, Nestcon registered profit attributable to the owners of the company of RM4.7 million on revenue of RM180.4 million. Meanwhile, the Group generated positive net operating cash flow of RM2.6 million as at 30 June 2021.
The healthy liquidity position has enabled the Nestcon to continue pursuing for more project across its key operating segments and currently sits on a tender book of RM3 billion. Since listing, the company has cliched about RM320.1 million worth of new projects from several reputable clients, comprising RM230.0 million of building construction contract as well as RM90.1 million jobs in the civil engineering and infrastructure segment. This lifted its outstanding order book to approximately RM1.5 billion, providing healthy earnings for the next 3 year,
Progress billings is expected to pick up pace in the second half of the year as the construction industry is now permitted to resume site activities.
