KUALA LUMPUR, June 22 — Gagasan Nadi Cergas Bhd, which posted lower results in the first quarter (Q1) ended March 31, 2020, due to projects being halted following the movement control order (MCO), has resumed on-site operations across all of its construction sites.

"This followed the successful screening of all of the group’s staff and workers for Covid-19 as per the Federal Government’s directive,” the construction and facilities management group said in a statement.

Gagasan Nadi Cergas today announced that its net profit declined 36 per cent year-on-year to RM3.95 million for Q1 2020 while revenue eased to RM55.14 million from RM68.89 million, which it attributed to the lower progress of construction projects.

The ACE Market company said it had a healthy unbilled order book of about RM459 million as of March 31, to be recognised until 2021.

Group managing director Wan Azman Wan Kamal said its double segment business model of stable recurring income from concession assets and construction order book would enable the group to sustain growth pace in the long term.

"To this end, we remain committed to adding Konsortium PAE Sepakat Sdn Bhd (KPS) to the group and further bolstering our concession business,” he said.

In October last year, the company proposed to acquire KPS, a polytechnic hostel asset concessionaire, for RM158 million, whose completion is delayed due to the MCO. However, the company and the vendors have mutually agreed to extend the conditional period of the share sale agreement until Aug 28, 2020.

Gagasan Nadi Cergas said it had received approvals from the Securities Commission for the proposed issuance of RM200 million Islamic medium-term notes and RM60 million convertible sukuk to be used for funding the acquisition.

The company is currently in the midst of obtaining necessary approval from the Public Private Partnership Unit (UKAS) and Bursa Malaysia Securities Bhd for the issuance of a circular to hold an extraordinary general meeting to seek shareholders’ approval for the proposed corporate exercise.

The proposed addition of KPS would entitle Gagasan Nadi Cergas to the future cash flow streams and extend its in-house facilities management services to KPS’s concessions assets.

Gagasan Nadi Cergas’ ongoing projects include the construction of the cardiology centre for Serdang Hospital, Selangor; Maktab Rendah Sains MARA in Bagan Datuk, Perak; Perbadanan PR1MA Malaysia Homes Pasir Mas (Phase 1) in Kelantan; Rumah Selangorku Putra Heights and Bukit Raja in Selangor; and a public residential development in Putrajaya.

The group is also building its own property development projects, namely Antara Residence, Putrajaya, and Selangorku civil servant housing scheme Selindung Ulu Yam, Selangor. — Bernama