SP Setia Enjoys Best Year Ever In 2013 With Record Sales

Last update: 12/12/2013KUALA LUMPUR, Dec 12 (Bernama) -- SP Setia Bhd enjoyed its best year ever in the financial year ended Oct 31, 2013 with RM8.241 billion in sales, exceeding the target of RM5.5 billion.

The record-breaking sales almost doubled the sales achieved last year of RM4.234 billion, President/Chief Executive Officer Tan Sri Liew Kee Sin said.

"The biggest driver was our international projects sales which reflect the success of Malaysian companies in international markets," he said at a media briefing here.

Liew said SP Setia's international projects totalled RM3.245 billion while the projects undertaken in Malaysia contributed RM4.996 billion.

As a result, sales in financial year 2013 have grown the total unbilled billings to be carried next year to RM9.643 billion and will contribute strongly to SP Setia's earnings over the next few years.

"This places us in a good position to ride out many uncertainties both global and domestic during the first half of financial year 2014," he said.

The challenges include increasing cost pressures as a result of skilled labour shortages, fuel and electricity subsidy rationalisation and various policy changes including real property gains tax.

"Market participants will require time to adjust but we are confident that fundamental demand for properties remains positive," Liew said.

SP Setia's pre-tax profit for the fourth quarter ended Oct 31, 2013 declined to RM179.594 million from RM193.282 million in the same quarter.

The pre-tax profit decline was due to the mismatch between initial expenses incurred and income recognition on several sizeable projects, Liew said.

"Our profit will jump tremendously upon the completion of projects in Melbourne and London by 2016," he said.

However, the group's revenue increased to RM900.168 million from RM763.623 million.

For the full year ended Oct 31, 2013, SP Setia's pre-tax profit rose to RM570.343 million from RM567.505 million previously.

Revenue increased to RM3.06 billion from RM2.53 billion previously.

The group has proposed a gross final dividend of seven sen per share.