Southern Score Builders Berhad (Southern Score) reported a headline decline of operating profit by around 60% to RM6.2 million in its first quarter (1QFY2024) results for the financial year ending 30 June 2024 (FY2024) from RM16.6 million in the preceding quarter (4QFY2023).
“(This is) due to the absence of reduction in the estimated gross development cost for one of the group’s projects which contributed to lower cost of sales and high base effect in the immediate preceding quarter,” it said in its 1QFY2024 results announcement today (Nov 21).
In a statement, the G7 contractor and project management specialist also reported a total revenue of RM28.6 million, a marginal decline by 6.6% from RM30.6 million in the immediate preceding quarter
“This largely due to lower revenue contribution due to one of the group’s project pending construction works,” it said.
The group added: “This is the fourth interim financial report announced by the group after the completion of its regularisation plan on 9 November 2022 for the first quarter of its financial year ending 30 June 2024.
“There are no comparative figures for the individual and cumulative preceding corresponding periods being presented due to the reverse acquisition of the group by Southern Score Sdn Bhd.”
Its executive director and chief executive officer Gan Yee Hin said this is a set of results that marks a subdued start to FY2024 as certain key projects have yet to commence construction works.
“That said, we look with optimism to the quarters ahead as construction activities for all our ongoing projects intensify.
“Over the near term, we expect earnings to be driven by the robust execution and delivery of all our ongoing construction projects as we remain on course to deliver the cumulative profit guarantee of RM80 million from FY2022 to FY2024.
“Notably, as at our recently concluded FY2023, we have achieved RM54.4 million out of the profit guarantee,” he said.
Gan also highlighted the group’s unwavering commitment to excellence in executing ongoing construction projects, winning new construction jobs and pursuing innovative initiatives within the construction sector.
“Looking forward, in addition to efficiently executing our existing order book of over RM570 million, we continue to aggressively tender for more jobs as we strive to broaden our revenue base by targeting more external jobs,” he added.
On innovation, notably, the group has signed MOU with MCC Overseas and Guangdong Bright Dream Robotics Co. Ltd (GBDR) to explore the development of robotic construction technologies in Malaysia.
As at 30 September 2023, Southern Score maintains a robust balance sheet, with a net cash position of RM54.7 million. The aggregate value of current assets amounts to RM187 million, while current liabilities stand at RM42.8 million.