Tuesday, October 20

ACE Market-bound TCS records net profit of RM5.07 million

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KUCHING: Building and infrastructure construction services provider TCS Group Holdings Bhd (TCS) has registered a profit after tax of RM5.07 million on the back of RM62.69 million revenue in the first quarter of financial year 2020 (1QFY20).

TCS announced its 1QFY20 unaudited consolidated financial results on Monday for the financial period ended (FPE) March 31, 2020. It also registered a profit after tax of RM5.07 million on the back of RM62.69 million revenue in 1QFY20.

Approximately 97.32 per cent or RM61.01 million was from the residential segment while the commercial segment contributed the remaining 2.68 per cent or RM1.68 million.

Gross profit stood at RM11.03 million in 1QFY20, translating into a gross profit margin of 17.59 per cent.

On its financial position, TCS is in a net cash position of RM14.37 million as at March 31, 2020 with gearing ratio of 0.45 times.

It also recorded a net cash inflow from operating activities of RM8.82 million for the FPE March 31, 2020.

There are no comparative figures for the preceding corresponding quarter and period as this is the first interim financial report made available in conjunction with its upcoming initial public offering (IPO) exercise on the ACE Market of Bursa Malaysia Securities Bhd (Bursa Securities).

“We are off to a good start with a healthy set of results in 1QFY20,” TCS managing director Datuk Tee Chai Seng commented on the financial performance.

“During the first quarter, we were busy with our ongoing high-rise residential construction projects that include Hermington, Tropicana Urban Homes and Suria Pantai.

“As at April 30, 2020, TCS’ outstanding orderbook stood at RM463.81 million, which will contribute progressively to the group’s revenue for the next three financial years up to financial year ending December 31, 2023.

“As at May 31, 2020, we were in the running for 10 projects which we have tendered for with a total contract value of RM2.13 billion. If awarded, these projects will contribute positively to our financial performance.

“We are confident that TCS’ prospects in the building construction industry remain favourable, backed by the implementation of various government measures and economic stimulus packages to strengthen the Malaysian economy, our competitive strengths and continuous efforts in expanding our services and capabilities.”

He concluded that looking ahead, TCS aims to continue to expand its services to include more building construction projects, such as high-rise, purpose-built buildings.

“In addition, we also intend to expand our infrastructure construction services and will form a new project team for this expansion.

“To support our expansion plans, we will acquire machinery and equipment such as trucks, excavators and tower cranes, to name just a few.

“The proceeds raised from the IPO will certainly help accelerate the execution of our future plans.”

TCS is scheduled to be listed on the ACE Market of Bursa Securities on July 23, 2020. Upon listing, it will have a market capitalisation of RM82.8 million based on the issue price of RM0.23 per share and an enlarged total number of 360 million shares.