AWC Reports A Net Profit In The Fourth Quarter Of Fiscal Year 21 And Recommends A Final Dividend Of One Sen

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AWC Bhd earned RM2.68 million, or 0.85 sen per share, in the fourth quarter ended June 30, 2021 (4QFY21), compared to a loss of RM29.9 million, or 10.2 sen per share, a year ago, due to greater operational income and reduced other operating expenditures.

Quarterly sales increased 29.62 percent to RM97.01 million from RM74.85 million the previous year, owing to contributions from the company’s environment, engineering, and rail businesses.

Additionally, the engineering services business recommended a final single-tier dividend of one sen per share for the fiscal year ending June 30, 2021 (FY21), which is subject to shareholder approval at the company’s next annual general meeting.

The firm will finalise the entitlement and payment dates at a later date and publish them in due course, according to the group’s Monday market filings.

The environment division’s income grew to RM27.9 million in the quarter under review from RM11.9 million a year earlier, owing primarily to new project executions in the Middle East area.

The engineering division’s revenue increased to RM17 million from RM15 million, owing mostly to the air-conditioning segment’s increased trading income in Singapore.

Rail revenue grew to RM10.9 million from RM8 million earlier, owing to improved project progress and orderbook fulfilment.

Quarterly net profit decreased 57.71 percent to RM6.33 million from RM6.33 million in 3QFY21, owing primarily to provisions for trade receivables (RM4.6 million), impairments on goodwill resulting from investments in subsidiaries (RM2.1 million), and loss on revaluation of investment properties (RM2.1 million) (RM700,000). Revenue increased 20.3 percent to RM80.64 million from RM80.64 million in the prior quarter, owing to increased revenue recognition in the environment, facilities, and rail divisions.

The firm recorded a net profit of RM25.86 million for the entire fiscal year of FY21, compared to a net loss of RM18.8 million a year earlier. Revenues for the whole year increased 9.16 percent to RM343.91 million from RM315.05 million.

In terms of outlook, the group’s board of directors is cautiously hopeful for the coming fiscal year, notwithstanding the obstacles posed by Covid-19.

Nonetheless, the group’s financial performance will continue to be bolstered by its RM861.8 million order book.

AWC’s shares closed half a sen or 0.98 percent down at 50.5 sen, valuing the business at RM162.14 million.

Published by Zack Baharum

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