Kelington Group Berhad Q4 net profit surged 82% to RM31.8 million as compared to RM17.5 million in the previous corresponding year. Meanwhile, the Group’s revenue increased 31% to RM517.7 million in FY21 against RM394.6 million a year ago.
The stellar growth was attributable to higher revenue contribution across all business divisions as well as subdued financial performance in FY20 due to lockdown measures implemented to control the spread of Covid-19 in key operating markets.
Revenue for the quarter under review rose 34% to RM180.1 million versus RM134.3 million in the previous year’s corresponding quarter. On the back of its revenue growth, the group posted a quarterly high net profit of RM11 million in 4QFY21, which rose 38% against RM7.9 million in 4QFY20. The year-on-year improvements were driven by projects recognition of a major general contracting job in Malaysia as well as higher revenue recognition from Ultra High Purity (“UHP”) projects awarded in Singapore in 2021.
On its business segment, UHP division remained the Group’s main revenue contributor, representing 66% of total revenue, and recorded a growth of 23% year on year propelled by extensive investment pipelines of semiconductor players around the globe to alleviate the prevailing chips shortage. Meanwhile, the Industrial Gases business continued its upward trajectory, recording 56% YoY revenue growth to RM34.5 million in FY21 due to increasing sales of liquid carbon dioxide (“LCO2”). Also, revenue from the General Contracting segment climbed 64% YoY to RM75.7 million, boosted by a large contract secured in Malaysia back in the third quarter of 2021.
Project flows remained robust for the Group as it secured RM1.2 billion worth of contracts in 2021. Inclusive of the carried forward projects from prior years, Kelington’s total order book stood rose to RM1.5 billion, of which RM1.1 billion remains outstanding.
As for the balance sheet, the gearing ratio stood at 0.29 times as the Group’s total borrowings decreased to RM56.2 million from RM58.5 million. Kelington remains in a healthy net cash position of RM50.2 million with total gross cash in hand of RM106.3 million.
The Board has also declared second interim dividend of 1.0 sen per share for the quarter under review. Inclusive of the first interim dividend of 0.5 sen, the total dividend per share for the current financial year amounts to 1.5 sen.
