Grand-Flo targets equal revenue contribution from its two divisions

KUALA LUMPUR (May 30): Grand-Flo Bhd hopes to see equal revenue contributions from its tracking solutions and property development segments this year, in light of a healthy order book and unbilled sales.
 
For the previous financial year ended Dec 31, 2016, the tracking solutions division contributed 56.4% of the group’s revenue, while the property division raked in 43.6%.
 
The tracking solutions segment, also known as enterprise data collection and collation system (EDCCS), has an order book of RM20.4 million, and is tendering for RM21 million worth of additional contracts this year.

The unbilled sales for the property division stood at RM32 million as of May 29, and the amount would be recognised this year, said Grand-flo group managing director Derrick Tan.

“The unbilled sales are from the group’s two completed projects in Penang, namely the industrial development Vortex Business Park, as well as the landed residential properties called The Glades, Tan told reporters after Grand-Flo’s annual general meeting today.

He said when The Glades was first launched in February 2015, it had a slow pick-up rate of about 20%, given the challenging property market.

He said the take-up rate had since increased from 32% as at end of 2016 to 51% currently, thanks to a “build and sell” approach which, according Tan, provides more confidence to customers who are able to see the end product before purchase.

The group is optimistic that both projects would be fully sold in 2018.

The group is currently focused on the development of the second phase of Vortex. Tan could not disclose a target launch date, but said the gross development value is RM80 million.

He added the group is looking to further expand its landbank, both in Penang and the Klang Valley, in the near future. — theedgemarkets.com

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