AWC Berhad’s (AWC) revenue for first quarter results for the financial year ending June 30, 2023 (1QFY2023) amounted to RM96.3 million, 37.8% higher than the same quarter last year driven by better performances across the facilities, environment and engineering divisions.
The facilities division benefited from increased contributions from new Healthcare projects and additional works undertaken under the Concession and CARP. The environment division experienced better project progress in Singapore and Malaysia, a stark improvement from the same quarter last year which was affected by movement controls.
Similarly, the engineering division also benefited from better project progress specifically in the plumbing segment as construction work was no longer hampered by movement controls. The rail division was impacted by slower project progress and a less than favourable product mix.
Operationally, the normalised operating environment that boosted the facilities, environment and engineering divisions more than made up for the softer performance of the rail division. This led to significant improvement in profitability as Group PBT grew 53.3% to RM8.6 million. The facilities and engineering contributed circa 85.3% to total Group PBT whilst the balance was made up by the engineering division.
The Group’s net cash position increased to RM113.2 million whilst the current ratio stood at an impressive 3.24x.
Going forward, AWC is optimistic of the prospects in the coming financial year as the Group is backed by an outstanding orderbook of close to RM800 million across all divisions.
“This is a satisfactory start to FY2023. Our 1QFY2023 financial performance is a commendable start to the year. Our revenue came in at RM96 million whilst profitability normalized to above RM5 million. Notably, our portfolio of Healthcare contracts has started to contribute positively to the facilities division and the Group.”
“We have also recently announced another significant contract win for Institut Kanser Negara amounting to RM188.3 million. With this, we expect the Healthcare segment to contribute more to the Group.”
“Looking forward the rest of FY2023, we expect to build on the momentum and expediently execute our orderbook as economic and construction activities have returned to normal. Barring unforeseen circumstances, key projects across our divisions will drive earnings as we carry out our outstanding orderbook of close to RM800 million.” commented AWC Group CEO/President Dato’ Ahmad Kabeer.
