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S P Setia

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For the finacial year of 2009, SP Setia Berhad’s net profit was RM171.23 million compared to RM 213.46 million, while revenue declined to RM1.41 billion from RM1.47 billion a year ago. SP Setia Berhad’s net profit for the ended 31 October 2009, fell 20% to RM171.23 million from RM213.46 million a year ago. This is mainly due to inclusion of profit recognised on the disposal of its 25.07% interest held in Loh & Loh Corporation Berhad amounting to RM26.9 million a year ago. However, the effect was partially palliated by the recognition of profits on the disposal land of Greenhill Resourced Sendirian Berhad. which at the quarter of the financial year. Despite of that, SP Setia Berhad’s profit and revenue were mainly derived form its property development activities which carried out in Klang Valley, Johor Bahru and Penang. Apart from the property development, the construction and wood-based manufacturing activities also contributed the earnings achieved. The advent of global financial crisis negatively impacted consumer sentiments. Lower profit contribution from property development due to global financial crisis which negatively impacted sentiments and this has resulted in slow property sales during the 1st quarter of the financial year of 2009. 2008 was a year of uncertainties and challenges. The country went through a period of political upheaval and rising inflation. Besides, the situation made worse by the spike in fuel prices. It affected many industries along with the construction sector suffered. In addition, work progression slowed down at project sites as high prices of construction materials. The rapidity of the cost escalation also caused a temporary interruption in the supply of such materials to site which further worsen the situation. Furthermore, higher funding costs charged out to profit and loss account prior to deployment of the funds raised from the company’s RM500 million bonds and warrants exercise to specific development projects. The market...

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