Ireka eyeing new partners for development initiatives

Ireka Corporation Bhd is undergoing a transition phase to focus on efforts to address the Practice Note (PN17) status.

The company said that it will keep looking for ways to increase the value of its order book and find new partners to jointly build new real estate projects.

Ireka reported to the stock exchange yesterday that its order book for building projects is now over RM1.09 billion, with roughly RM889 million still outstanding.

Ireka returned to the black with a net profit of RM172.23 million in the first quarter of its financial year ending June 30, 2023 (Q1 FY2023) compared with a net loss of RM14.90 million in the corresponding quarter in the preceding year.

The deconsolidation of the company's loss-making subsidiary, Ireka Engineering and Construction Sdn Bhd (IECSB), which was the first step toward a complete overhaul of its structure and business strategy, was primarily responsible for the company's greater net profit.

Despite the deconsolidation of IECSB, the company's revenue improved to RM11.86 million in Q1 FY2023 from RM8.29 million previously, due to the continuation of the movement control order imposed by the government last year.

In Q1 FY2023, Ireka's property development division reported greater revenue of RM10.83 million compared to RM4.88 million in Q1 FY2022.

Revenue for the company's trading and services division fell from RM2.33 million to RM1.60 million.

The investment holding and other segment revenue for the current period to date were greater at RM2.26 million.

The construction segment's revenue is not recognised as a result of IECSB's deconsolidation, it said in the filing.

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