SINGAPORE (Aug 28): Capital World, the group formerly known as Terratech which is now into property development, announced FY17 earnings increased 63% to RM70.1 million ($22.2 million) from RM42.9 million in FY16.
Group revenue more than doubled to RM183.9 million for the fiscal year ended June compared to RM81.6 million recorded last year.
Capital World attributed this to higher revenue from Capital 21, a retail podium component of the group’s mixed development in Johor and its serviced suites component, Capital Suites, which were recognised based on a higher percentage of completion.
Concurrently, selling and distribution expenses more than doubled to RM9.42 million from RM4.21 million the previous year, due to the increase in sales commission and advertising and promotional expenses.
In addition, due to higher payroll related costs from additional headcounts, general and administrative expenses also more than doubled to RM13.0 million in FY17 compared to RM5.42 million last year.
As at end June, the group’s net cash and cash equivalents stood at RM23.4 million.
Siow Chien Fu, Executive Director and CEO of Capital World says, “Going forward, we will stay focused on executing our growth strategies. We will adopt this niche model to property development in Malaysia as well as in other regions. Furthermore, we are actively looking for opportunities to form strategic partnerships and joint ventures to develop projects in Southeast Asia, to enhance the growth of our property development business.”
Capital World last traded at 10.2 cents.