Construction company GDP Holdings released its third quarter results reporting a revenue decrease of 37.06% (equivalent to -RM47.71 million), with revenue amounting to RM81.04 million compared with RM128.75 million in the corresponding quarter of the previous year.
The group attributed the decline to the impact of work suspension on the 8 Conlay Project from 16 August 2022 with the partial resumption only on 9 January 2023 for the façade work of Tower A and on 24 March 2023 for the remobilisation
and recommencement of Tower A, followed by the determination of the 8 Conlay contract on 19 April 2023 (Termination)
The Group’s profit before tax (PBT) declined by RM2.99 million (representing a decrease of 57.91%) to RM2.18 million compared with RM5.17 million in the corresponding quarter of the previous year. It was also from lower profit margins from on-going projects as a result of the increase in construction material prices and labour costs, higher project preliminaries and staff costs due to the prolongation of contract durations caused by the previous COVID movement restrictions as well as incurring preliminaries and overheads during the period when works for the 8 Conlay Project were under full suspension or major portion of the project are under suspension as well as the period after the 8 Conlay Determination.
In the current financial period ended 30 September 2023, GDB reported a revenue decrease of 46.41% (equivalent to -RM206.62 million), with total revenue amounting to RM238.60 million compared with RM445.22 million in the corresponding period of the previous year.
The PBT declined by RM15.49 million (representing a decrease of 76.80%) to RM4.68 million compared with RM20.17 million in the corresponding period of the previous year.