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KUALA LUMPUR: Merge Housing Bhd posted a net loss of RM4.27 million for the fourth quarter ended May 31, 2010 (4Q), narrowly minimising losses of RM4.28 million from a year ago, it said in a Bursa filing on Friday, July 30.
Meanwhile, basic losses per share stood at 2.98 sen from 2.88 sen a year ago.
The group posted slightly lower losses despite recording lower negative turnover of RM5.32 million during the current quarter, compared with RM51.14 million a year ago, due to a withdrawal of sale from a retail lot purchaser for the 1st Jelutong Commercial project as the purchaser was unable to secure the necessary funding.
As 67.5% of the revenue has been recognised up to May 31, the sale withdrawal thus resulted in the reversal of turnover of about RM8.6 million, as well as the reversal of cost totaling RM5.9 million.
“This reversal consequently translates to the group registering a negative turnover of RM5.32 million,” it said.
However, the group shrunk its pretax losses to RM1.78 million from RM5.03 million a year ago. It had attributed the higher pretax losses to the lower profit margin of its product mix last year.
On a yearly basis, the group posted a net profit of RM1.15 million for the financial year ended May 31, 2010 (FYE2010), from a net loss of RM24.29 million despite 4.8% lower revenue of RM79.54 million versus RM83.6 million.
The turnaround was mostly thanks to land sales, steady site progress and more effective control of cost and resources.
Furthermore, the impact of the general increase in building material prices and the adverse economic conditions during the previous year was lessened in the current financial year, it said.
The group expects its financial performance to improve, driven by improvement in the Malaysian economy as well as new launches in mature locations.
“Nevertheless, the management will continue to be diligent with a concerted effort towards cost efficiency and innovative marketing strategy,” it said.
