EcoWorld International recorded a loss before tax of RM2.12 million in 2Q 2023 as compared to a LBT of RM66.53 million in 2Q 2022. The developer said the lower LBT was mainly due to: higher foreign exchange gain as the GBP strengthened against Ringgit Malaysia, higher interest income following capital contribution repayments from the UK JVs; and lower finance costs as a result of the Group’s progressive repayment of loans.
However, it said it is on track to achieve its full-year sales target of RM1.4 billion, with sales achieved of RM619 million plus reserves of RM299 million, totalling RM918 million in 7 months of FY2023.
On 19 June 2023, shareholders of EcoWorld International approved the Group’s Proposed Capital Reduction exercise thus paving the way for the planned distribution of excess cash back to shareholders in the form of dividends. EcoWorld International aims to declare a 1st tranche dividend of at least RM300 million in the near term while working towards achieving the RM900 million total distribution target set for 2023.
Commenting on the latest performance “On 19 June 2023, shareholders holding 99.992% of EcoWorld International’s voting shares voted in favour of the Group’s Proposed Capital Reduction, at the Company’s Extraordinary General Meeting. This signifies near unanimous support for the Group’s plans to concentrate our efforts on the monetisation of our completed stocks, cash preservation and generation with a view towards distributing excess cashback to shareholders,” said Dato’ Teow Leong Seng, President & CEO of EcoWorld International.
“With the approval of our shareholders secured we expect to be able to complete our Proposed Capital Reduction by August 2023. Thereafter, based on the Group’s substantial net cash reserves of more than RM700 million accumulated as at 30 April 2023, we are well on track to be able to declare a 1st tranche dividend amounting to at least RM300 million in the near term. We will also be working towards achieving the RM900 million total distribution target set for 2023,” said Teow. With total sales (including reserves) of RM918 million achieved as at 31 May 2023, EcoWorld International is on track to meet its sales target of RM1.4 billion for FY2023. Given that sales of its remaining completed stocks are the key determinant for distributions to shareholders, EcoWorld International will continue to offer attractive incentive packages to buyers and maintain its marketing campaigns. In addition, it is also exploring various options including bulk offers to accelerate sales.
These initiatives are expected to sustain the sales momentum enabling conversion of remaining stocks to cashdespite the softening in real estate demand following hikes in interest rates and cost of living pressures in the UK and Australia
