Ahmad Zaki reports loss in 4Q on higher tax expenses

KUALA LUMPUR (Feb 28): Ahmad Zaki Resources Bhd has posted a net loss of RM3.75 million for the fourth quarter ended Dec 31, 2017, versus a net profit of RM8.28 million a year earlier, on higher tax expenses.

The civil engineering and construction group reported a loss per share of 0.71 sen, compared with an earnings per share of 1.46 sen in the previous fourth quarter.

In a Bursa Malaysia filing today, the group said its engineering and construction division had been issued a notice of additional assessment from the Inland Revenue Board for 2011 to 2016, amounting to RM12.2 million.

It added that following the settlement, the division has finalised its tax status up to 2016.

Ahmad Zaki said its fourth quarter revenue halved to RM178.27 million from RM357 million previously.

For the full year, the group's net profit increased 4% to RM28.23 million, from RM27.21 million in FY16, while revenue fell 20% to RM960.69 million from RM1.2 billion.

Excluding the one-time tax impact, it said the group's normalised net profit came in at RM45.9 million for FY17, growing 14.2% from a normalised net profit of RM40.2 million in FY16, largely due to better construction project mix, IIUM Hospital concession income and lower losses from the plantation division.

Moving forward, group managing director Datuk Seri Wan Zakariah Wan Muda said he is optimistic that the group will achieve creditable financial performance in FY18.

"With many major projects such as the East Coast Rail Link and the KL-Singapore High Speed Rail opening up for tender in 2018, we believe there will be many opportunities available for our construction division. We aim to leverage on our reputation and track record to take part in the many jobs that will be on offer," said Wan Zakariah.

Ahmad Zaki's share price was trading 4.5 sen 5.42% lower at 78.5 sen at 4.45pm, giving a market capitalisation of RM416.1 million. — theedgemarkets.com

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