Posted by Jimmy Song > 2013-05-27 21:15 | Report Abuse

FITTERS has entered into two separate sale and purchase agreements with a combined purchase consideration of RM44.7 million KUALA LUMPUR, 27 May 2013 – FITTERS DIVERSIFED BERHAD (“FITTERS” or the “Group”), Malaysia’s largest fire protection and preventions solutions provider and manufacturer announced its financial results today for the quarter ended 31 March 2013 (“Q1FY2013”) with a reported revenue of RM69.8 million. For the quarter under review, the Group recorded a profit before tax (“PBT”) of RM11.7 million and a profit after tax (“PAT”) of RM8.5 million representing an increase of 95.4% and 89.1%, respectively from the last quarter. Under the Group’s business segments, its Property Development and Construction took the lead as the Group’s main profit contributor with a revenue of RM42.5 million. This marks a staggering increase of 560% as compared to its corresponding quarter last year. The property segment PBT of RM9.6 million makes up approximately 82% of the total PBT for the quarter under review. This strong profit increase is attributed mainly to the sales of Zetapark Development, especially the “LOFT” Service Apartments which have been 100% sold out. Fitters’ Fire Service and Renewable & Waste-to-Energy segments reported a revenue of RM22.6 million and RM3.9 million, respectively. The loss in profit in the Renewable & Waste-to-Energy segment for the quarter under review was due to the temporary halt in production in the existing palm oil mill for Q1FY2013; this was to allow for upgrading and expansion works to be undertaken. Production has now resumed as normal with full capacity at the palm oil mill. PROPOSED ACQUISITIONS In addition to the Group’s financial results announcement today, FITTERS has also announced that its subsidiary, FITTERS Property Development Sdn. Bhd. (“FPDSB”) has today entered into two separate sale and purchase agreements with Ebic Development Sdn. Bhd. (“EDSB”) for the acquisition of EDSB’s 100% equity interest in Rasa Anggun Development Sdn. Bhd. (“RADSB”) and in Superior Villa Sdn. Bhd. (“SVSB”) respectively, for a combined consideration of RM44.7 million. RADSB had earlier entered into a sale and purchase agreement to purchase a leasehold land measuring 50 acres in Rawang (“the Rawang land”) for a purchase consideration of RM32.7 million. Subject to the completion of the acquisition by FPDSB of the 100% equity interest in RADSB and of the completion of RADSB’s purchase of the Rawang land, it is envisaged that the Rawang land will be eventually be developed by the Group in five phases with a total estimated gross development value of RM300 million. The first phase of the proposed development is expected to be launched by the end of 2013. For FPDSB’s proposed acquisition of SVSB (which in turn, had earlier entered into a joint venture with the owner of a 2.8 acre piece of land off Jalan Ipoh. (“the Jalan Ipoh land”), this will enable the Group to develop, via SVSB, a condominium development on the Jalan Ipoh land. The proposed development will be of a low-density development that will consist of 284 units of apartments. This is expected to be launched by the third quarter of 2013. “These proposed acquisitions are a strong addition to our strategic expansion plans laid out for our property development segment. For the Rawang Land development, we are targeting to launch the five phases within the next three years. These upcoming launch activities will positively add to our profit levels for this segment,” commented Dato’ Richard Wong, Group Managing Director. Upon the completion of the proposed acquisitions RADSB and SVSB will become wholly-owned subsidiaries of FITTERS Property Development Sdn. Bhd. For more information about the Company please visit www.fittersgroup.com