KUALA LUMPUR, 25 July 2022 - Construction and Integrated Facilities Management (IFM) specialist Widad Group Berhad (“WGB” or “Group”) is expected to continue to regain a firm footing for the financial year of 2022 (FY2022), supported by its current total orderbook of approximately RM1.6 billion.
Dato' Dr Mohd Rizal Mohd Jaafar, Managing Director of Widad Group Berhad said: “Out of the RM 1.6 billion total orderbook, 52% or RM832 million is contributed by IFM business and concession. The construction sector contributes the remaining RM768 million. This orderbook is expected to keep us busy for the next three to five years for the construction segment and up to twelve years for IFM and concession segment.”
“As economic activities in Malaysia are expected to further normalise at a projection of 11.5% growth in the construction sector, the Group is upbeat to enhance its performance continuously and further expand its business through tenders and acquisition of the strategic business in FY2022,” he added.
He further elaborated: “As our country is at the recovering phase, we expect more projects to be opened for tender in the market, and our strategy is to replenish our orderbook on a monthly basis which encompasses IFM and construction projects from the private and public sector.”
The Group posted a profit before tax of RM6.41 million after recording revenue of RM52.04 million in the first quarter (Jan-March 2022); it was the highest revenue achieved by the group ever since the halt in economic activity caused by Covid-19. The strong performance was also reflected in the bottom line, with a profit after tax (“PAT”) that surged nearly seven times to RM 6.32 million from the previous corresponding period in tandem with economic recovery and a double-digit PAT margin.
The construction sector's contribution in Q1 FY2022 increased significantly from RM5.9 million (FY2021) to RM24.9 million (Q12022). On top of this, WGB also expanded further into the concession segment in 2021 and achieved RM2.9 million in revenue in FY2021. In Q1 FY2022 alone, this segment earned RM2.5 million of revenue.
For this year, WGB continues to focus on its IFM, Construction and concessionaire business.
One of the Group’s latest moves is the proposed acquisition of Palm Shore Holdings Sdn Bhd (PSHSB) for RM35 million. PSHSB holds the concession of the Royal Malaysian Navy Base Camp. The proposed acquisition will diversify their IFM services offerings customer base to include defence clientele.
Looking back to FY2021, WGB also completed the acquisition of Serendah Heights Sdn Bhd (SHSB), worth RM127.02 million. This was the Group’s effort to take over SHSB’s concession for the development, maintenance, and construction of Universiti Teknologi Malaysia (UiTM) Jasin, Melaka. It has a total contract value of RM789.8 million which will end by January 2034.
Last year, the Group managed to secure a total contract of RM545.1 million. Some of the projects include a RM244.3 million contract to build Package 3C of the Kota Bharu–Kuala Krai Expressway; a RM53.2 million contract to build a school in Bangi, Selangor; a RM29.3 million project in relation to the facilities management and maintenance of Royal Brunei Naval Base; and Kedah state government projects to upgrade water treatment plants in Kuala Muda and Baling in Kedah worth RM129.4 million and RM89.8 million respectively.
WGB currently enjoys a healthy balance sheet and a sizeable asset of RM922 million. They are also in a healthy cash position with RM180 million of total cash and cash equivalent, which demonstrates their ability to sustain their current business and future business expansion.
