KUALA LUMPUR (Oct 25): Vizione Holdings Bhd posted a net profit of RM121,000 in the first quarter ended Aug 31, 2016 versus a net loss of RM833,000 a year ago.

Revenue rose to RM8.6 million, versus RM10.25 million.

The group’s pre-tax profit for the current quarter stood at RM0.29 million, an increase of 134% as compared with the preceding year’s corresponding quarter, and this is mainly due to discontination of loss making electronic manufacturing services, after disposal of its subsidiary, Singatronics (Malaysia) Sdn Bhd, on Jan 29, 2016.

The group continues to register encouraging financial results, after the improved performance for the financial year ended May 31, 2016. The existing Tawau and Kota Belud projects are expected to contribute positively to the earning of the group, moving forward.

This is in line with the group’s strategy to strengthen its financial position. Arising thereof and due to the favourable outlook of the Program Perumahan Rakyat (PPR) projects, the group views the venture into PPR projects as promising, and wishes to increase its involvement in PPR projects. The group will continue to seek and secure new business opportunities and to expand its existing business in the construction and development sectors. The new subcontract works demonstrates the Board’s initiative in pursuing continuing growth in its construction business. The Board believes the new subcontract works will lead to an expansion of the group’s existing construction activities and contribute positively to the group’s future financial performance.

“Our tenderbook is 100% from housing. Infrastructure and property development are in our pipeline,” managing director Dato’ Ng Aun Hooi said.

However, the group’s future plans are subject to earnings from a rights issue, with warrants slated for September 2016, which will hopefully raise between RM30-40 million, according to Ng.

Its current orderbook, which consists solely of construction projects, stands at RM140 million and will sustain the company for two years, according to chief financial officer Simon Lim.

Property is expected to account for 20-30% of the group’s revenue stream, going forward.

Vizione is currently pursuing five Program Perumahan Rayat (PPR) projects, two of which are located in Sabah and the other three in Kedah, Terengganu and Kelantan respectively.

The company has also signed a joint venture with Paragon Residencia for the development of 28 storey apartments in Seri Kembangan.

According to a circular on its rights warrants, the project has a gross development value of RM152.22 million, 80% of which Vizione is entitled to, via its subsidiary, ASD.