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. hich 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. 008 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 conditions in 2009 which are some positives factors compared to Asian Financial Crisis. The corporate and household balance sheets were strong and job losses were minimal in key target markets. Besides, the country’s financial institutions were also well capitalised with ligh liquidity while interest rates were at a historic low. The revenue for the financial year of 2008 and 2009 were RM1. 7 billion and RM1. 41 billion. Revenue of FY2009 fell 4% to RM1. 41 billion from RM1. 47 billion. However, FY2009 set a new benchmark in terms of total sales of RM 1. 65 billion or an 17% improvement from FY2008 which was RM1. 403 billion. As mentioned above, sales during the 1st quarter of FY2009 was very weak due to extreme caution exercised by potential purchasers in the light of the unending flow of bad economic and financial news. The sales improvement of FY2009 improved by the introduction of the SP Setia 5/95 Home Loan Package which was launched on 19 January 2009.