GFM Services’ Net Profit in 3QFY22 Quadrupled to RM8.1 million

photo credit: GFM Services

Integrated Facilities Management service provider has posted a strong set of financial results for its third quarter (3QFY22) and nine months for the financial period ended 30 September 2022 (9MFY22).

For the quarter under review, revenue increased by 46.5% year-on-year (YoY) to RM40.2 million from RM27.4 million in the previous year’s corresponding quarter (3QFY21).

3QFY22 profit attributable to equity holders of the parent (net profit) jumped 3.7 times to RM8.1 million, against RM2.6 million in 3QFY21. The significantly improved financial performance was mainly attributed to the maiden contribution from a new contract to provide facilities management services awarded by Jabatan Kerja Raya (JKR).

For the cumulative nine-month period, 9MFY22 revenue increased by 6.5% YoY to RM97.0 million from RM91.1 million in the preceding year’s corresponding period (9MFY21).

In terms of revenue breakdown by segment, the Facilities Management (FM) division remained as the major revenue contributor with revenue growing by 11.4% to RM65.8 million, making up 68% of total revenue. Meanwhile, the Concession Arrangements segment represented 32%, amounting to RM31.2 million after consolidation adjustment.

In tandem with the higher revenue, GFM’s 9MFY22 net profit rose 65.1% to RM12.9 million, against RM7.8 million in 9MFY21.

“Our quarterly financial results reflect the robust growth driven by the newly secured contract from Jabatan Kerja Raya which will contribute positively to our financial performance for the next 5 years until July 2027,” Encik Ruslan Bin Nordin, the Executive Vice Chairman of GFM said.

“We hope to sustain our financial performance over the medium term, supported by our facilities management contracts which have an average tenure of around 3 to 5 years and a concessionaire which ends in 2035. Nonetheless, we are not ones to rest on our laurels and shall continue to bid for more contracts to replenish our orderbook. As at 30 September 2022, GFM’s outstanding orderbook stood at RM1.36 billion,” he added.

“One of the areas we are exploring is to provide management and maintenance services for workers’ lodging. With the enactment of the amended Act 446 which requires employers to abide by minimum standards of housing and amenities, there is great demand for decent accommodation for employees. With our experience in delivering workers camp management services at Pengerang, we are poised to capture these arising opportunities,” he remarked.

“Apart from that, we are working to expand our recurring revenue streams that can provide long-term earnings visibility, particularly in the Highway Rest & Service Area (RSA) business.”

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