KUALA LUMPUR: Grand-Flo Bhd has returned to the black in the third quarter (Q3) ended September 30, 2020 with a RM1.23 million net profit from RM418,000 net loss in the same quarter a year ago.
In a statement today, Grand-Flo said this was achieved on the back of higher revenue of RM20.1 million, up 10 per cent from RM18.23 million in last year's corresponding quarter.
The company said its performance was strongly driven by the property development division which recorded a net profit of RM3.1 million in Q3, up 180 per cent from RM1.1 million in the same quarter last year.
Grand-Flo executive chairman and group managing director Datuk Seri Yap Ngan Choy said the initiatives undertaken by ut was starting to bear fruit.
This was reflected in the strong contribution of its property development division, particularly as a result of new development projects under its belt.
"The division has continued to deliver profitable and sustainable earnings for the first three quarters of the year, with double digit net profit margins."
"Following the completion of the disposal of our Enterprise Data Collection and Collation System (EDCCS) segment, we are fully focused on strengthening our property development business.
"Leveraging on our technical skills-sets, vast experience and expertise in the sector, Grand-Flo aims to steer property development as our core business stream," he said.
Yap said the group was confident that its net cash position coupled with its proven expertise as a project rehabilitation specialist would place it in good stead and enable it to offer competitive bidding in this segment.
"We remain single-minded in creating sustainability and profitability for the rehabilitating of abandoned projects, with a view towards supporting local property ownership," he said.
For the nine-month period, Grand Flo's net profit plunged 82.9 per cent to RM859,000 from RM5.05 million, while revenue shrank 16.7 per cent to RM41.39 million from RM49.72 million.