KUALA LUMPUR: Property developer Eastern & Oriental Bhd saw its net profit climb 29% to RM21.24mil on higher revenue of RM77.29mil for the second quarter ended Sept 30, 2014.
For the first half period, E&O posted a 22% increase in revenue to RM207.04mil against RM169.67mil in the last year. However, net profit fell 7.9% to RM40.2mil compared with RM43.68mil in the same period a year ago.
The company said on Friday its stronger financial performance was due to the steady progress of the Andaman development in Penang, and the successful launch of the first phase of Avira Garden Terraces in Iskandar Malaysia.
E&O remains focused on its mid-term plan over the next three-year period to attain a cumulative net profit of RM450mil by the financial year ending March 31, 2016.
“At E&O, we look beyond short-term assessments that can be restrictive in accurately reflecting the property development industry, choosing to adopt a longer term strategy to achieve sustained growth and create sustainable value for all our stakeholders,” said deputy managing director Eric Chan Kok Leong.
At the company’s EGM earlier on Friday, E&O obtained shareholders’ approval for a five-year redeemable convertible medium term notes of up to RM350mil in nominal value, which is the first issuance under the medium term notes (MTN) programme.
The MTN programme is part of E&O’s proposed fund raising exercise, which comprises an issuance of up to RM500mil in nominal value of private debt securities (PDS), which had obtained approval earlier this month from the Securities Commission.
“The private debt securities will further mitigate interest rate risks, providing working capital to ensure an efficient cash flow management and stronger balance sheet whilst the group embarks on upcoming property development activities,” added Chan.
E&O will launch 18 East, the residential block within the master development at Seri Tanjung Pinang.
In Iskandar Malaysia, E&O will unveil subsequent launches of its landed homes at Avira following its successful maiden launch of its first phase of Avira Garden Terraces.
It is also finalising details of the 12.5 acre wellness sanctuary that anchors the overall 207 acre development.
ESCA House, E&O’s second project in the UK after Princes House, will be redeveloped into a six-level residential development comprising 28 private residential units in London’s Zone One area of Bayswater, neighbouring Notting Hill and within walking distance to Hyde Park. - The Star
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