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Friday, September 19, 2014

Talam returns to black with 2Q net profit RM7.6m (Edge)

Talam Transform Bhd has returned to black with a net profit of RM7.6 million in the second quarter ended July 31, 2014, from a net loss of RM6.5 million a year ago.

Revenue multiplied 4.55 times to RM88.7 million from RM19.5 million previously.

In a statement to Bursa Malaysia, the property developer said the bottomline improvement was mainly due to higher gross profit, other income, and lower finance cost.

However, Talam said the net profit was dampened by the provision for impairment on property development costs of RM46.3 million.

For the half-year period, net loss widened to RM11.8 million versus RM7.4 million in the previous corresponding period, while revenue skyrocketed to RM170.7 million from RM41.3 million a year earlier.

Talam said the widened net loss was affected by higher administrative and other expenses, while its revenue jump was mainly due to the disposal of development lands by its property development and investment division.

“The group will continue to enter into joint ventures with reputable corporations to develop its land banks,” said Talam on its prospects.

However, Talam foresees a challenging financial year ahead due to tougher lending guidelines by Bank Negara Malaysia and increasing construction costs.

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