UEM Edgenta Posts RM23.4m Profit In H1 2023

KUALA LUMPUR, Aug 28: UEM Edgenta Berhad today announced a 15.6% increase in net profit to RM23.4 million in the six months ended 30 June 2023 following a higher revenue of RM1.35 billion (RM1.17 billion 1H FY2022).

Announcing its unaudited financial results for 1H FY2023, the asset management and infrastructure solutions-based company said as for Q2 FY2023, net profit grew by 15.7% to RM12.5 million from RM10.8 million in Q2FY2022 while revenue improved by 14.6% to RM719.3 million from RM627.7 million.

The double-digit increase in revenue for 1H FY2023 resulted from higher volume of pavement works performed for major expressways and commencement of new contracts secured for the asset management division, UEM Edgenta said.

Revenue growth in the healthcare support services division was mainly driven by strong contract renewal rates of more than 90% as well as diversification into areas such as the hospitality sector in Singapore and Taiwan.

As of June 30, 2023, UEM Edgenta’s financial position remained healthy by maintaining a low gearing ratio at 0.3 times with cash and bank balances of RM607.0 million.

New contracts secured in 1H 2023 totalled RM922 million, achieving 70% of FY2022’s total new contracts secured. Notably, a substantial 62% of these new wins originated from the company’s tech-enabled solutions business, underscoring the increasing significance of this portfolio.

Of the new contracts, 70% of them are from its healthcare segment, a testament of the company’s pre-eminence in this field while 75% of the new contract wins were contributed from international businesses, a reflection of its strong credibility and proven track record as a leading international integrated facilities management service provider, UEM Edgenta said.

Its orderbook as of June 30, 2023 remained healthy, totalling RM9.6 billion, it added.

During the first half of 2023, UEM Edgenta said the macroeconomic environment continued to face multiple headwinds, including renewed concerns on slowing global economic growth triggered by the escalating geopolitical tensions, prolonged supply chain disruptions and inflationary cost pressures.

Against this backdrop, UEM Edgenta said it remained steadfast towards its focus in maintaining agility in navigating the business during this uncertain period.

Commenting on the latest results, UEM Edgenta’s Managing Director/Chief Executive Officer Syahrunizam Samsudin said: “Driven by our Edgenta of the Future 2025 (EoTF2025) ambition, we continue to demonstrate strong progress in delivering our technology and sustainability-based solutions that cater to the needs of our stakeholders and that enables the business to differentiate and expand in high-growth markets. These efforts have translated into a good set of results in terms of new contract wins and a solid financial performance in the first half of 2023.

“The results in the first half are reflective of our journey towards becoming a leading global integrated facilities management company catalysed by our proprietary technology and sustainability-embedded capabilities.

“As we enhance our product and service propositions to gain market share, both locally and internationally, we will continue to collaborate with leading companies globally to bring to market solutions that provide superior outcomes in managing our stakeholders’ assets.”

Syarunizam also said that as UEM Edgenta expanded its businesses globally, “we will continue to optimise our delivery models and enhance our operational efficiencies through cost synergies, digitisation and innovation as we institutionalise ESG (“Environmental, Social and Governance”) principles in our work culture and execution of services.”