EcoWorld International Records RM518mil in FY2024 Sales and Reserves

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“Embassy Gardens led sales with RM166 million, followed by Wardian at RM153 million and Millbrook Park at RM41 million.”

Kuala Lumpur, 20th June 2024, 12.35pm – EcoWorld International has recorded RM433 million in sales and an additional RM85 million in reserves, totaling RM518 million over the first seven months of FY2024.

The largest contributor was Embassy Gardens with RM166 million in sales, followed by Wardian at RM153 million, and Millbrook Park at RM41 million, according to a company media release.

Including net cash balances from joint ventures, the group’s total cash balance stood at RM349 million as of April 30, 2024.

Based on its strong cash position, the board has announced a first interim dividend of six sen per share for FY2024, amounting to RM144 million.

However, EcoWorld International reported a pre-tax loss of RM13.9 million for 2Q2024, compared to a pre-tax loss of RM2.1 million in 2Q2023.

This decline was primarily due to lower gross profit as most Australian project stocks have been sold; an impairment loss on amounts owed by EcoWorld London, as the joint venture invests in obtaining better planning consents for its remaining projects; and reduced foreign exchange gains from the appreciation of the British Pound (GBP) against the Malaysian Ringgit (RM) on GBP-denominated bank balances compared to 2Q2023.

“Construction costs in the UK have continued to rise even though home prices have softened in recent months. With uncertainties around policy direction as the UK approaches a general election in July 2024, and market expectations of rate cuts later in the year, homebuyers are likely to delay transactions as they await policy clarity and lower mortgage rates.

“Therefore, the current environment is not favorable for the Group to undertake launches in the near term,” stated president & CEO Datuk Teow Leong Seng.

Teow also mentioned that despite the current challenges, the UK real estate market offers long-term opportunities, highlighted by strong rental rates in London.”

“The group will move forward with launches once cost pressures stabilize and the expected returns become more predictable.”

He further noted that sales are progressing well, stating, “We have reduced the value of unsold completed stocks to around RM400 million, with the group’s effective share being approximately RM300 million. The board remains committed to our goal of generating up to RM500 million in excess cash by selling our completed stocks.”

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