WRITEBACK ON COSTS BOOSTS ZELAN EARNINGS

WRITEBACK ON COSTS BOOSTS ZELAN EARNINGS
The Star Online 
Business News - 22nd August 2014

KUALA LUMPUR: Zelan Bhd posted net profit of RM12.57mil in the first quarter ended June 30, 2014, an increase of 60% from RM7.85mil a year ago, boosted by the writeback on costs.

It said on Friday the writeback arose from the commercial settlement of a project in Indonesia of RM9.7mil on back charge recovery from supplier and net interest income of RM6.7mil.

Zelan revenue fell 13.7% to RM61.02mil from RM70.72mil. Earnings per share were 1.85 sen copared with 1.39 sen.

Elaborating on its turnover for the quarter, it said revenue from the engineering and construction segment was lower at RM60.8mil compared with RM64.5mil a year ago.

The current quarter revenue was mainly attributed to local projects revenue of RM56.3mil (June 30, 2013: RM64.5mil) and the revenue from Royal Chalet project in Abu Dhabi of RM4.5mil (June 30, 2013: Nil), it said.

Its revenue from property and development segment from rental income of office premises and car park bays for the quarter was comparable to a year ago.

For the investment and others segment, the group recorded higher revenue of RM6.0mil a year ago mainly due to the dividend recognition from its available-for-sale financial assets.