Malton Berhad saw its revenue for the current quarter declined by 65.1% to RM240.8 million as compared to RM689.6 million reported in the preceding corresponding quarter while PBT for the current quarter decreased by 11.8% to RM16.1 million as compared to RM18.3 million reported in the preceding corresponding quarter.
The main reason for the massive decline was attributed to the poor property billings from its core business, the revenue for the current financial year also declined by 44.4% to RM1,006.2 million as compared to RM1,809.0 million reported in the preceding corresponding financial year. The significant drop is mainly to lower billings from the property division as the Pavilion Bukit Jalil Mall, Villa 22 @ Bukit Rimau and The Park 2 @ Bukit Jalil projects are nearing completion in current financial year while the billings from the construction division improved substantially by 239.8% to RM350.1 million as compared to RM103.0 million in the preceding corresponding financial year.
PBT for the current financial year decreased by 45.6% to RM28.1 million as compared to RM51.6 million reported in the preceding corresponding financial year. Profit after tax declined from RM17.7 million in the preceding financial year to RM1.2 million in current financial year mainly due to the sharp decline on Group revenue, higher fixed operating expenses, and increasing building material cost which drastically affected margins. The Group recorded gain on fair value adjustments in investment properties and redeemable preference shares of RM12.9 million and RM5.6 million respectively during the current financial year.
Revenue from the property development division declined by 93.5% as compared to the preceding corresponding quarter due to lower billings from Pavilion Bukit Jalil Mall, Villa 22 @ Bukit Rimau and The Park 2 Residence @ Bukit Jalil. PBT from the property development division registered a loss of RM2.8 million for current quarter as compared to a profit of RM7.6 million recorded in the preceding corresponding quarter attributed mainly to lower margins recorded in current quarter as well as loss on sale of completed stocks. Revenue from the property development division declined overall by 61.8% during the current financial year.
As for PBT for the financial year Maltin saw a decline by 73.2% to RM8.7 million in the current financial year from RM32.3 million in the preceding corresponding financial year. The lower profit during the financial year was mainly due to lower sales coupled with lower margins and higher costs and write-down of inventories of RM2.3 million during the current financial year. Construction revenue from construction division improved by 1,405.7% and 12.1% in profits for the current quarter.
During the current quarter, the Group incurred a loss after tax of RM4.1 million despite recording gain on fair value adjustments of investment properties and preference shares of RM12.9 million and RM5.6 million respectively, attributed mainly to lower revenue and margins while operation costs remained and higher tax charge in current quarter due to losses in certain subsidiary companies which are not available for group relief and expenses incurred which do not qualify for tax deduction.
Outlook for the rest of the year in property development and construction industries are expected to remain challenging. However, several measures undertaken by the Government such as low interest rates, reintroduction of Home Ownership Campaign and exemption of realproperty gain tax for residential properties are expected to boost the property sector demands. Barring a prolonged COVID-19 pandemic and possible adverse consequential economic effects, the on-going development projects with total unbilled sales of RM896 million together with the on-going construction contracts in hand, are expected to contribute to the earnings of the Group for the next financial year.