PETALING JAYA: Talam Transform Bhd’s net loss for the second quarter ended July 31, 2017 widened to RM5.11 million from RM2.28 million a year ago due to discontinuation of its hotel and recreation segment.
The group recorded a revenue of RM23.72 million, a 62.63% decrease from RM63.48 million generated during last year’s corresponding quarter, mainly due to lower proceeds from sale of development lands.
For the six months period, its net loss narrowed to RM11.54 million from RM14.20 million, mainly due to a gain from disposal of a subsidiary amounting to RM2.4 million and higher gross profit margin.
The group recorded revenue of RM28.10 million, a 59.45% decrease from the RM69.29 million generated during last year’s corresponding period, mainly due to lower proceeds from sale of development lands and management fees.
On its prospects, Talam said the group’s joint venture projects are on-going. In addition, the group had submitted its new development plans on various parcels of land, some of which have already been approved by the relevant authorities. The group has started its build-then-sell projects which are being funded by cash flows from asset sales that are already locked in.
However, the board foresees a challenging environment ahead for the group due to market conditions brought about by tougher lending guidelines by Bank Negara Malaysia and an increasing construction costs environment.
Talam closed 11.11% higher on Friday at 5 sen with 7.97 million shares traded.
Source: The Sun Daily