The construction and integrated facilities management specialist recorded a revenue of RM52.04 million in the Jan-March 2022 period – its highest revenue ever achieved for the first quarter.
The group began the new financial year of 2022 (FY2022) on a strong footing due to the strong performance in the bottomline, with a profit after tax (PAT) that surged by nearly seven times and a double-digit PAT margin.
Revenue in the first quarter ended 31 March 2022 rose by 203% year-on-year to RM52.04 million from RM17.22 million in the previous corresponding quarter. The strong performance was achieved as the Group’s businesses recovered from slow activities due to movement control
order experienced in early 2021.
Widad registered a PAT of RM6.41 million in the first quarter of FY2022, surging by almost seven-fold from RM938,000 in the previous corresponding quarter. The PAT margin for the quarter under review also improved to 12.3%, up from 5.4% a year earlier. Its bottomline improved markedly due to refund of claim deductions in the Integrated Facilities Management (IFM) segment amounting to RM2 million, net finance income from concession business of RM2.8 million and charge out of sukuk related expenses amounting to RM7.2 million.
Their construction arm in the first quarter ended 31 March 2022 saw its revenue surging by over 13-fold y-o-y to RM24.58 million. While, the IFM business recorded a revenue of RM24.91 million, representing a growth of 62% y-o-y. Meanwhile, the concession segment posted a revenue of RM2.6 million.
“We are looking to expand our business through tenders, especially those with improved margins, and acquisitions of strategic businesses that would expand our income base and technical expertise. Hopefully, with robust business growth, WBG will be in a better position to reward its shareholders with good and sustainable dividend payouts,” Dato’ Dr Mohd Rizal Mohd Jaafar, Managing Director of Widad Group Berhad.
“As of 31 March 2022, Widad’s order book stood at RM1.52 billion and has earnings visibility until 2034. The company is also actively bidding for new tenders nationwide, with a tender book size of RM1.54 billion. The group hopes to win at least 10% of these new tenders bid by the Group,” he added.
In the last one year, Widad has secured contracts totalling RM516.70 million. Some of the projects include a RM244.3 million contract to build Package 3C of the Kota Bharu–Kuala Krai Expressway; a RM53.2 million contract to build a school in Bangi, Selangor; a RM29 million project in relation to the facilities management and maintenance of Royal Brunei Naval Base;
and Kedah state government projects to upgrade water treatment plants in Kuala Muda and Baling in Kedah worth RM129.4 million and RM89.8 million respectively.
