Faber Group Bhd will continue to focus on growth for its integrated facilities management (IFM) business in the UAE despite the non-renewal of three of its contracts which had an estimated combined worth of RM184mil per annum.
“Our growth focus for IFM is still in the UAE and India. Currently we are working on several bids in these countries and will make the necessary announcements as and when contracts are secured,” managing director Adnan Mohammad told StarBizWeek in an e-mail yesterday.
In two separate announcements on Wednesday, Faber told Bursa Malaysia that it had received letters from the Department of Municipal Affairs, Western Region Municipality (WRM), Abu Dhabi, giving notice of non-renewal of its existing integrated facilities management contracts worth 154 million dirham (RM129mil) and 65.6 million dirham (RM55mil) per annum respectively.
These contracts will expire in June and April respectively with no penalties to either party. Faber's shares plunged 44 sen to RM2.19 on Thursday following the news.
“We were made to understand that the reason for the non-renewal is because the principal (WRM) is reviewing all the current yearly renewal of their large contracts in terms of the remaining workscope required and its annual value.
“In relation to the review by WRM, Faber is not the only contractor affected in this exercise,” said Adnan.
“As it is a natural expiry and not termination, Faber will not appeal but shall participate as and when WRM decides to tender the new contracts,” he added.
No comments:
Post a Comment