Vizione slips into the red for 2Q due to RM80m impairment

• Quarterly revenue fell 21.3% year-on-year to RM49.50 million from RM62.90 million, as the completion or near completion of several projects left the group without significant new project commencements.

KUALA LUMPUR (Jan 31): Construction player and property developer Vizione Holdings Bhd (KL:VIZIONE) slipped into the red with a net loss of RM79.68 million for the second quarter ended Nov 30, 2024 (2QFY2025), reversing from a net profit of RM213,000 a year ago.

The loss was due to an RM80 million impairment of goodwill on consolidation of its shares during the quarter, the group said in a bourse filing on Friday.

Losses per share stood at 5.18 sen, compared to earnings per share of 0.01 sen in 2QFY2024.

Quarterly revenue fell 21.3% year-on-year to RM49.50 million from RM62.90 million, as the completion or near completion of several projects left the group without significant new project commencements.

The construction segment contributed 88% of the group’s revenue, posting an operating profit of RM457,000. However, the investment holdings segment reported an operating loss of RM81.15 million due to the goodwill impairment.

On a quarter-on-quarter basis, Vizione swung to a RM79.68 million net loss from a net profit of RM680,000 in 1QFY2025, while revenue declined 44.4% from RM89.05 million.

No dividend was declared for the quarter.

Looking ahead, the group noted it has completed 83% of the National Robotic and Cybernetics project, which is expected to be fully delivered within the current financial year. Meanwhile, construction works for the Residensi Sentral Project in Putrajaya commenced in April 2024.

Despite challenges such as deferred projects and rising costs of building materials, Vizione said it remains cautiously optimistic, with plans to streamline operations and selectively tender for new projects to replenish its order book.

"The group is actively working to accelerate the progress of the existing construction projects which [were] affected during the Covid-19 pandemic. The group is also looking at further streamline in operations and improve overall efficiency in order to mitigate risk associated with labour cost and building material price," it said.

Vizione’s shares were unchanged at 11 sen as at 3.50pm on Friday, giving it a market capitalisation of RM61 million. Some 1.78 million shares had changed hands.

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