GFM Services net profit up slightly in 1QFY22
KUALA LUMPUR (May 26): Net profit of GFM Services Bhd for the first quarter ended March 31, 2022 (1QFY22) increased by 4.42% to RM2.65 million from RM2.54 million a year earlier earlier, thanks to a higher gross profit while the group incurred lower projects.
In the quarter under review, GFM’s gross profit (GP) reached RM11.0 million, resulting in a GP margin of 38.3%, compared to 33.7% in 1QFY21, as the group incurred costs lower projects. Net profit margins also increased to 9.2% from 7.9% in the same period last year.
The company’s finance charges were also reduced to RM4.9m in 1QFY22 from RM5.4m in 1QFY21, mainly due to borrowing repayments and a reduction in KP’s term loan repayment. Mukah Development Sdn Bhd, following the cut in the overnight rate. .
Revenue for the quarter under review, however, decreased by 10.13% from RM32.05 million to RM28.8 million, mainly due to the completion of several group facilities and order management projects. lesser changes recorded during the quarter.
Heading into 2022, GFM executive chairman Ruslan Nordin said the company was cautiously optimistic about the group’s outlook, buoyed by its ongoing initiatives to expand capacity and backlog.
“For our FM segment, we continue to provide FM services at the sites we manage. At the same time, we are working hard to expand our customer base and project pipeline as we participate in tenders. As of March 31, 2022, our outstanding order backlog stood at RM1.07 billion.
“In addition to this, we are exploring avenues to increase our recurring revenue streams. To this end, we recognize the prospects for increased profits in the Rest and Service Area (“RSA”) business and consider developing the RSA offered at Hulu Bernam, Perak.
“We plan to build the premises as a high-end public infrastructure, with modern retail, as well as food and drink (‘F&B’) spaces. Once completed, GFM will become the facilities manager, thereby strengthening the group’s order book,” he added.
Shares of GFM closed unchanged at 18 sen on Thursday, May 26, with a market capitalization of RM100.69 million.