KOTA DAMANSARA, Selangor, Feb 28 (Bernama) -- Encorp Berhad (“ENCORP” or “the Group”), a Main Market-listed property development and investment company, has reported a strong financial turnaround for the financial year ended 31 December 2024, posting a net profit of RM3.4 million compared to a net loss of RM8.5 million in the previous year.
For the full year 2024 performance, the Group recorded a profit before tax of RM6.1 million, marking a strong recovery from a loss of RM1.1 million in the corresponding period in 2023. This represents ENCORP’s first return to profitability since 2016.
ENCORP’s turnaround was mainly driven by a reversal of RM6.6 million in cost of sales provisions from prior years, accounting gains of RM2.1 million from fair value adjustments on investment properties and the reversal of inventory write-offs totalling RM1.8 million, all contributing positively to the bottom-line. Additionally, improved efficiencies from close monitoring, effective cost control measures and the successful execution of restructuring and rationalisation initiatives further strengthened the Group’s performance.
The Group is supported by stable revenue streams from its concession, rental income, construction and facilities management divisions. With operations backed by a solid net asset per share of RM1.06, ENCORP remains well-positioned to sustain growth and strengthen its financial resilience. Property development remains ENCORP’s largest revenue contributor at 51%, followed by concession income at 39.8%.
Commenting on the performance by ENCORP’s Group Chief Financial Officer and Officer-In-Charge, Kamarul Azman Bin Kamarozaman @ Amir, “ENCORP’s return to profitability reflects the strength of our strategic initiatives, disciplined cost management and operational efficiencies. This achievement would not have been possible without the steadfast support and guidance of our Board of Directors, whose leadership has been instrumental in steering the Group towards a stronger financial position.
In 2024, we have taken significant steps to enhance governance and strengthen our operational framework, ensuring greater transparency and efficiency across the organisation.
Moving forward, we remain committed to optimising our assets, expanding revenue streams and unlocking the full potential of our landbank. With a clear strategy in place, we are confident in delivering sustainable growth and long term value for our shareholders and stakeholders.”
ENCORP is also actively exploring several promising opportunities in the pipeline. A key priority for the Group’s property division this year is the development of Balau Residences in Kuantan, Pahang and Lamanda Chuping Phase 2 in Perlis. ENCORP is currently finalising project details and looks forward to unveiling more in due course.
About Encorp Berhad (ENCORP)
Listed on the Main Market of Bursa Malaysia (Ticker: ENCORP/6076), ENCORP is principally an investment-holding company. The Group is currently involved in three core businesses – property development, property investment and construction. Please visit encorp.com.my for more information.
SOURCE: Encorp Berhad (ENCORP)
FOR MORE INFORMATION, PLEASE CONTACT:
Name: Pauline S Lalung
Tel: 03 6286 7777
Email: pauline@encorp.com.my
--BERNAMA
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