KUALA LUMPUR: Damansara Realty Bhd is eyeing a conservative profit growth of 15 per cent from its integrated facilities management (IFM) services this year.
Group chief executive officer Brian Iskandar Zulkarim said the IFM segment contributed 87 per cent of Damansara Realty’s total revenue in 2017.
"We are very optimistic of our IFM prospects this year. We are looking to expand it as we see vast growth potential in this segment for us to provide end-to-end integrated facilities management," he told reporters in a media briefing here yesterday.
The company, which suffered a net loss of RM27.8 million in 2016, turned around to record RM17.8 million net profit last year.
Its IFM segment contributed significantly to the company's overall revenue, with a 30.8 per cent jump in yearly revenue to RM221.6 million in 2017 compared to RM169.3 million the year before.
This was mainly due to ongoing contracts from Petronas, Malaysia Airports, Menara TM, Dataran Maybank and Etiqa buildings, MRT stations, Singapore Sports Centre and AeroDarat Services.
Its IFM offering includes landscaping, F&B and catering, security, medical facility, hotel and cabin management, parking & logistics and cleaning services.
When asked on future bids in 2018, Brian said the company expects to bid for two major contracts this year within the range of RM100,000 to RM10 million in profits per month.
"With increasing demand from clients to deal with single service providers that can offer one stop solution for all maintenance and operational requirements, our strengthened IFM segment is now able to provide a wider scope of services.
"This puts us on good standing to benefit from increased recurring income from a diverse suite of bundled offerings through our various subsidiaries," he added.
The company added it would potentially be able to raise up to RM239 million of funds, allowing it to draw down funds as needed and to increase its trading liquidity.
The funds will be used to accelerate the company's development activities and finance working capital requirements for any newly-secured, ongoing and future projects.