KUALA LUMPUR: Vizione Holdings Bhd (VHB) posted a revenue of RM63.8 million for the first quarter (1Q) financial results ended 28 February 2021 (FY21), the highest in twelve months as it experienced gradual recoveries in the construction industry and the general economy after a crisis-laden 2020.
VHB changed its financial year end from 31 May to 30 November and as a result, comparative figures were not available for the same quarter last year.
Construction segment contributed around RM54.2 million or 85 per cent to the company's revenue.
In terms of profitability, VHB reported an operating profit of RM3.5 million and net profit of RM1.0 million, returning to the black after several loss-making quarters.
The positive figures was boosted by the recently added healthcare division, which contributed over RM2.5 million in operating profit.
Construction and property development segments generated RM1.9 million and RM1.2 million in operating profit respectively.
VHB's new gloves manufacturing business made its maiden top line contribution of RM5.6 million or 8.8 per cent while the balance was attributed to the property development arm.
To recap, the healthcare segment is born out of VHB's acquisition of 51 per cent stake in SSN Medical Products Sdn Bhd (SMP) for RM5 million, which was completed in February 2021.
SMP is involved in the manufacture of both latex and nitrile medical gloves as well as specialty gloves such as elbow length
medical gloves.
Approximately 80 per cent of its products are exported overseas mainly to the United States, Germany, China and other European countries.
VHB managing director Datuk Ng Aun Hooi moving forward, the company is optimistic that the construction industry will continue to recover, underpinned by the nationwide rollout of the vaccination program, upcoming infrastructure projects outlined in the Budget 2021, and the various economic packages offered by the government.
"Signs of recovery are already evident in the form of increased number of contracts awarded.
"Job flow for us is very encouraging as well. Last month, we were awarded three construction contracts worth a total of RM801 million.
"We believe the positive momentum will continue following the promising start into our new financial year," he said in a statement today.
Ng also expressed his positive stance on the venture into gloves manufacturing which has started paying off.
"Production is fully booked until September 2021 with strong demand at healthy pricing level.
"Based on current order flow, we expect contribution to the company to be increasingly higher in the coming quarters.
"Overall, we believe the healthcare segment will generate sustainable and meaningful profit to VHB," he said.
On the corporate front, shareholders have, at the recent extraordinary general meeting held on 20 April 2021, approved the proposed private placement of up to 30 per cent of its ordinary shares to raise up to RM62.1 million.
The proceeds will be mainly utilised to expand the healthcare segment and provide funding for construction projects.