MK Land returns to the black

MK Land Holdings Bhd returned to the black with a net profit of RM18.3 million in its full year to June 30 2009, and it expects to do even better this year, driven by higher property sales.

The developer, which suffered a loss of RM60 million in 2008, said its turnaround was due to strong property and land sales.

"The strategies which we put in place during the recession has paid off and we are optimistic of seeing continuous growth in the current financial year," said its executive chairman Tan Sri Mustapha Kamal Abu Bakar.

He said the company is seeing robust growth in sales despite the economic slowdown due to its properties' strategic location and also a more stable property market.
"Another contributing factor is the success of our turnaround plan or renaissance which took place early July 2008," Mustapha Kamal told reporters at a media briefing in Petaling Jaya, Selangor, yesterday.

MK Land's revenue for 2009 stood at RM246.5 million as against RM137 million previously.

In the 12-month period, the group recorded sales worth RM136 million compared with only RM93 million previously.

Mustapha Kamal is confident the property market will continue its recovery over the next 12 to 18 months.

"With a total landbank of 2,833.6ha, we have enough landbank to last us for the next five years," he said, noting that in the first three months alone until August, the group already achieved sales worth RM271 million.

The group has a total gross development value of RM19.8 billion.

By Business Times (by Azlan Abu Bakar)