KUALA LUMPUR: Southern Score Builders (SSB) Bhd is confident about the company's performance in the upcoming quarters as building activities for all its active projects pick up speed.
Executive director and chief executive officer Gan Yee Hin said that over the near term, the company expects earnings to be driven by the robust execution and delivery of all ongoing construction projects.
He said that SSB remains on course to deliver the cumulative profit guarantee of RM80 million from the fiscal years 2022 to 2024 (FY22-FY24).
"Notably, as of our recently concluded FY23, we have achieved RM54.4 million out of the profit guarantee. Looking forward, in addition to efficiently executing our existing order book of over RM570 million, we continue to aggressively tender for more jobs as we strive to broaden our revenue base by targeting more external jobs," he said.
Gan expects some of these tenders to be realised in the coming months.
As of Sept 30, 2023, SSB maintained a robust balance sheet with a net cash position of RM54.7 million. The aggregate value of current assets amounts to RM187 million, while current liabilities stand at RM42.8 million.
The company reported a total revenue of RM28.6 million and achieved an operating profit of RM6.2 million in the first quarter of its financial year ending June 30, 2024 (1QFY24).
Revenue declined marginally by 6.6 per cent from RM30.6 million in the immediate preceding quarter, largely due to a lower revenue contribution from one of the company's projects pending the commencement of construction works.
The company achieved an operating profit of RM6.2 million, a headline decline from 4QFY23 due to the absence of a reduction in the estimated gross development cost for one of its projects, which contributed to a lower cost of sales and a high base effect in the immediate preceding quarter.
"This is a set of results that marks a subdued start to FY24 as certain key projects have yet to commence construction work. That said, we look with optimism to the quarters ahead as construction activities for all our ongoing projects intensify," he said.
Gan said that the company is actively pursuing innovation initiatives in the construction industry to revolutionise Malaysia's housing sector.
"We are dedicated to identifying cutting-edge construction technologies to enhance productivity, efficiency, and sustainability in the construction process," he said.
He said that the company's commitment to innovation has resulted in the establishment of a memorandum of understanding with MCC Overseas and Guangdong Bright Dream Robotics Co. Ltd (GBDR) to explore the development of robotic construction technologies in Malaysia.
Some potential areas of focus for the partnership include the use of robotics, artificial intelligence, and automation to improve efficiency and accuracy in project planning, design, and execution, he said.