KUALA LUMPUR: TA Global Bhd recorded a fall in its pre-tax profit to RM26.6 million for its fourth quarter ended Jan 31, 2012
from RM29.1 million for the previous corresponding period.

Revenue for the fourth quarter improved 41.5 per cent to RM163.3 million from the RM115.4 million registered previously.

For the full year, the group recorded an increase in its pre-tax profit to RM117.6 million from the RM109 million posted for the previous financial year while revenue for the full year rose 39.7 per cent to RM574.8 million from RM411.3 million previously.

In a filing to Bursa Malaysia today, the company said that although the group enjoyed higher interest income from financial receivables and higher hotel revenue, contribution from the finance division was lower in the fourth quarter, as compared to the previous year's corresponding period.

TA said the net segment result of its finance division in the fourth quarter declined 30 per cent to RM5.6 million compared to RM8.1 million in the same quarter of financial year 2011.

The group's hotel operations reported stronger growth in revenue to RM104 million in the fourth quarter of the financial year under review, 21 per cent above the RM86 million in the same quarter of the last financial year.

TA said the hotel operations division had continued to provide steady net profit to the group, with RM69.8 million and RM43.7 million respectively for financial year 2012 and financial year 2011.

The group had achieved sustainable net operating results in its property investment and property development segments.

TA also said that Malaysia's growth prospects for 2012 may be lacklustre in view of the global uncertainties.

Hence, the company expects the overall economic growth to be slower this year, given the anticipated slowdown in net exports and moderated growth in domestic spending.

"Generally, the Overnight Policy Rate maintained by Bank Negara
Malaysia will benefit the property market which is expected to
remain stable in 2012," it added.

On the property sector, the company said that the introduction of the new Responsible Financing Guidelines, had taken a toll on the property industry as potential buyers exercised caution and adopted a wait-and-see attitude before investing.

TA expects property prices in Malaysia to sustain itself as it benefits from the "wealth effect", arising from the recent surging stock market.

"In the long run, we foresee property prices to increase with Bank Negara's commitment to keep the OPR unchanged and the Klang Valley Mass Rapid Transit expected to drive higher demand," it added. - BERNAMA