KUALA LUMPUR: SP Setia Bhd surpassed its targeted sales of RM3.8bil by achieving a commendable total sales of RM3.82bil amidst the Covid-19 pandemic.
Against the backdrop of this accomplishment and complemented by a revenue of RM3.23bil achieved by the group, impairment provisions of RM475.9mil made in the previous second and third quarters of FY2020 nevertheless resulted in the group registering a loss before tax of RM156.7mil for the year in review.
The provisions, largely for the impairment of the work in progress and inventories under construction of £62.4mil (RM336.3mil) arising from the group’s 40% owned joint venture company, Battersea Project Holding Company Ltd, UK (BPHC) in the third quarter FY2020, were made as a prudent measure and had no impact on the group’s cashflow position.
Excluding these impairment provisions, the group would have a profit before tax of RM319.2mil for the year in review.
In respect of the Islamic Redeemable Convertible Preference Shares A and Islamic Redeemable Convertible Preference Shares B, the company declared a preferential dividend of 6.49% per annum and 5.93% per annum respectively for the financial period from July 1, 2020 till Dec 31, 2020.
“It is worth noting that the group recorded a significant surge of RM1.56 billion in sales during the last quarter of FY2020 against the backdrop of a resurgence in Covid-19 cases and subsequent re-implementation of the MCO, and a substantial RM1.45 billion of bookings in the pipeline,” said SP Setia president and chief executive officer Datuk Khor Chap Jen.
Local projects contributed RM3.11bil or 81% of the sales whilst the remaining RM716mil was contributed largely by international projects. On the local front, sales were mainly from the central region with RM2.28bil, aided by RM312mil contribution from the northern region while the southern region contributed RM415mil.
“We managed to clear RM695 million of completed inventories in FY2020 and will continue to do so in FY2021. We will also continue fast-tracking the group’s digital transformation journey and enhancing digital touchpoints to reach and engage with potential customers while implementing new measures to reorient our product offerings, optimising our land banks utilisation and Team Setia’s capabilities as part of our strategies to build resilience against future disruptions.
“Riding on the upsurge in sales momentum during Q4FY2020, SP Setia will maintain its sales target of RM3.80 billion for FY2021. There are positive sentiments and optimism arising from the mass vaccination program, which will be rolled out in stages globally and across Malaysia,” said Khor.
As of Dec 31 last year, the group has 48 on-going projects, with an effective remaining land bank of 8,528 acres with a gross development value of RM136.87bil and total unbilled sales of RM10.05bil which will sustain the group over the next two years.