KUALA LUMPUR: Non-bank lender ELK-Desa Resources Bhd’s net profit rose to RM7.91 million million in the fourth quarter ended March 31, 2018 from RM6.42 million.
Its revenue increased 11 per cent to RM27.7 million in the fourth quarter ended March 31, 2018 from RM24.85 million a year ago.
For the 12 months, the group’s revenue grew 10 per cent year-on-year to RM104.13 million, while net profit increased to RM25.92 million from RM23.0 million.
In a statement today, ELK-Desa said the group’s improved performance was primarily due to the growth of its hire purchase financing division.
Its hire purchase receivables grew 15 per cent year-on-year to RM387.28 million.
For the 12 months, ELK-Desa’s hire purchase financing division recorded a 12 per cent increase in revenue to RM73.08 million from RM65.43 million last year.
“The notable growth of our hire purchase financing division can be attributed to the stable economic environment during the financial year under review as well as our concerted efforts in credit recovery.
“While we remain cautious on the outlook ahead, we expect demand for used car hire purchase financing to remain strong,” it said.
The company believes that the move by the government to lower cost of living and improve wages may lead to enhanced consumer sentiment, which will in turn augur well for its business.
“In financial year 2019, we intend to strengthen our presence in this niche segment by expanding our hirer base and dealer network while keeping risks within tolerance levels.
“We expect the group’s financial performance for the financial year ending March 31, 2019 to be better than 2018,” it said.
In view of ELK-Desa’s positive performance, the board of directors has recommended a single tier final dividend of 3.5 sen per share in respect of the financial year ended March 31, 2018.
In addition to the first single tier interim dividend of 3.25 sen per share paid on February 8, 2018, the total dividend for the financial year ended March 31, 2018 would be 6.75 sen per share.