Press Release

KAJANG, 28 AUGUST 2018: Protasco Bhd saw its first half year revenue grow 14 percent to RM399.7 million from last year’s RM351.9 million, driven by periodic works awarded to the maintenance division.

For the six months ended 30 June 2018, the group posted a lower pre-tax profit of RM7.7 million, arising from contributions from its maintenance, engineering services and trading divisions.

The maintenance division saw its half year pre-tax profit rise by 15 percent to RM17.8 million, following a 29 percent jump in revenue to RM221.2 million. Its trading and manufacturing division almost doubled its revenue which surged 93 percent to RM78.3 million, and posted a 35 percent jump in net profit to RM1.4 million for the first half.

"Prospects for the remaining financial quarters are expected to be challenging, due to delays in commencement of certain projects and the allocation of funding under the maintenance division,” said Executive Vice Chairman and Group Managing Director Dato’ Sri Ir. Chong Ket Pen.

“Nevertheless, Protasco is actively pursuing various other opportunities to improve the construction and maintenance divisions,” he said. Work on the Perumahan Penjawat Awam Phase 2 will progress as scheduled and is expected to contribute positively to the Group, he added.

Lower revenue at the property development and education divisions affected the group’s second quarter, resulting in a small net loss of RM407,000 on a 10 percent growth in revenue to RM242.1 million. The property development division saw no new launches during the quarter, while the education division saw lower than expected student enrolment.

The group has undertaken a right-sizing exercise of its operations. The education division has started a rationalisation of its teaching faculties and a cost optimisation initiative to reduce operating overheads and enable a return to profitability.

Meanwhile, the property development division had launched its mixed development project the D’ Perdana Telipot in Kota Bharu, Kelantan in August.