KUALA LUMPUR: UEM Edgenta Bhd’s net profit increased to RM30.5 million in the first quarter (Q1) ended March 31, 2018 from RM30.12 million recorded in the same quarter a year ago.
Its revenue grew 10.5 per cent to RM460.79 million from RM417.06 million previously.
In a filing to Bursa Malaysia, the company said this was mainly attributable to higher revenue from new contracts in the commercial healthcare services sector and additional work secured for highway maintenance services.
“Healthcare and Infrastructure sectors continue to be the major contributors for the group’s revenue,” it said.
UEM Edgenta managing director and chief executive officer Datuk Azmir Merican said the group’s strategy of consolidating and strengthening its core sectors has started to yield results as evidenced by improvements in both revenue growth as well as profit margins.
He said the group remains optimistic of its prospects in all the sectors it operates in as well as its ability to maintain the growth momentum for the rest of 2018.
“While we are focused on securing new businesses, all efforts are also underway to improve our operational and organisational excellence, with the use of technology and innovation enablers.
“This will help us to deliver better margins and profitability moving forward,” he said.
UEM Edgenta said its strong track record will allow it to maintain its position as a leader in this field and capitalise on new business opportunities.
Over the years, the company said it has demonstrated its capability in assisting a wide range of public and private sector clients improve their assets’ operational efficiency and increase financial returns on investments in their assets, while at the same time providing an enhanced end-user experience.
This is evidenced by the fourth consecutive year of UEM Edgenta’s Healthcare Services division receiving the prestigious ‘Enhanced Clean Mark Accreditation Scheme (Gold) Award’ from the National Environment Agency of Singapore.
In the Infrastructure sector, UEM Edgenta has consistently been at the forefront of the highway maintenance industry.
The company undertakes network management and maintenance of over 2,500 km of expressways and state roads across Malaysia and Indonesia; in particular the North-South Expressway which is maintained in compliance to the high standards as prescribed by the Malaysian Highway Authority.
The company recently unveiled an enhanced dividend policy of at least 50 per cent and up to 80 per cent payout ratio based on profit after tax and non-controlling interests, representing an increase as compared to the previous policy’s payout ratio of up to 70 per cent.
“The favourable announcement sets the tone of future dividend payouts, which is further supported by the encouraging financial results in Q1 2018,” it said.