Lagenda expects stronger 3Q financial performance due to two new project acquisitions

PERAK (Aug 24): Lagenda Properties Bhd, formerly known as DBE Gurney Resources Bhd, expects stronger performances in the coming quarters due to the recent acquisitions of two ongoing flagship affordable township projects — Bandar Baru Setia Awan Perdana and Lagenda Teluk Intan.

In a statement today announcing its financial results for the second quarter ended June 30, 2020 (2QFY20), the developer said these acquisitions were completed on Aug 12, 2020, and that the post-acquisition profits will be incorporated from 3QFY20.

For its 2QFY20 financial performance, its net profit has more than tripled year-on-year (y-o-y) to RM2.6 million while profit before tax has more than doubled y-o-y to RM3.4 million, despite a lower revenue y-o-y for the same quarter.

Its 2QFY20 revenue stood at RM10.4 million, compared to RM20.9 million the previous year — caused by the implementation of the Movement Control Order (MCO) where the construction progress at all sites were delayed.

The cumulative revenue for the first half (1HFY20) has increased 16% y-o-y to RM30.7 million, and the net profit has jumped 223% y-o-y to RM6.9 million. The better 1HFY20 performance was mainly due to revenue and profit contributions from its four ongoing developments, instead of just one development the previous year.

Managing director Datuk Jimmy Doh Jee Ming noted that the prohibitions and restrictions imposed during MCO have impeded the progress of the construction works at its project sites.

“Nonetheless, our project team has since put in place plans of catching up rapidly on the progressive works at all our sites with the support from our contractors. In addition, all our construction sites adopted steps to ensure that all Standard Operating Procedures during various phases of the MCO were adhered to.

“The group will continue to adapt to the challenging times to ensure its long-term sustainability, despite the uncertainties caused by the MCO. We will continue to expand our property development business especially in the affordable housing segment via acquisition of existing ongoing projects or potential land banks for development or joint venture with potential landowners,” he said.

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