Kuala Lumpur, 26 November 2010: Main Market-listed construction and property developer, Ireka Corporation Berhad ('Ireka') today announced the receipt of a Letter of Intent (LOI) from Transmission Technology Sdn Bhd, to construct the 27-storey and 37-storey office towers at KL Sentral (Lot G), with a contract value of RM232.75 million.
Group Managing Director of Ireka Corporation Berhad, Lai Siew Wah, said, "We are pleased to have secured another project this year. We will continue to actively bid for construction contracts and are hopeful of securing some of the RM1.0 billion jobs that we have tendered for over the last 6 months.
Lai added, "With the recent roll-out of the Economic Transformation Programme, we are confident of opportunities for Ireka and the prospects for the construction and property development industries in the country."
Ireka had recently completed the construction of the 1 Mont' Kiara development, and is currently undertaking the construction of a high-end condominium project, SENI Mont' Kiara, as well as the Kulai-Second Link Expressway Interchange. The company is also involved in the construction of Phases Three and Four of Sandakan Harbour Square in Sabah, comprising a modern lifestyle mall and an international class 'Four Points by Sheraton' hotel. With the addition of the construction works for the office towers at KL Sentral, the Group's order book now stands at RM1.06 billion, of which approximately RM460 million remain outstanding.
Today, Ireka had also announced its half-year results, reporting revenues of RM209.74 million for the 6-month period ended 30 September 2010 (H1 FY2011). This represents a 20% increase from RM174.61 million recorded in the corresponding period in FY2010. The increase is mainly contributed by higher volume of construction works completed during the period.
During the period under review, Ireka recorded a post-tax loss of RM3.12 million compared to a net profit of RM5.60 million in the previous corresponding period. The loss is after accounting for the share of loss in Aseana Properties Limited (an associated company in which Ireka holds a 23% stake) of RM7.50 million and a mark-to-market loss for its share investment in Kinh Bac City Development Shareholding Corporation of about RM1.99 million.
On the property development front, plans are underway for the launch of a high-end residential project on Jalan Kia Peng (within the Kuala Lumpur City Centre), in the second half of 2011. This project is expected to contribute positively to the earnings of Ireka, directly through its 30% stake in the project. (The remaining 70% stake is held by Aseana Properties Limited.)
At the Company's Annual General Meeting held recently on 23 September 2010, shareholders had approved a first and final single-tier dividend of 5% for FY2010. The dividend payout of approximately RM5.70 million, equivalent to 66% of the Group's net profit for FY2010, will be paid on 15 December 2010. The dividend entitlement date is fixed at 25 November 2010.