JBB BUILDERS (01903) announces profit of up to 2 million Ringgit expected in the middle term, compared to a loss in the same period last year, for company shareholders.

JBB BUILDERS (01903) announced that the group expects to achieve a profit attributable to owners of the company not exceeding RM 2 million for the six months ending 31 December 2024, while the group incurred a loss of approximately RM 3 million for the same period in 2023. The announcement stated that the expected profit increase is mainly due to a significant increase in revenue during the period, with gross profit increasing significantly compared to the same period in 2023. This is mainly attributed to the higher gross profit margin of new contracts awarded during the period compared to other ongoing contracts, partially offset by losses incurred in the building and infrastructure services sector due to provisions for default and compensation payments. General and administrative expenses increased compared to the same period in 2023, primarily due to an increase in employee numbers and employee compensation leading to higher employee costs, as well as an increase in stamp duty due to payments made for the acquisition of investment properties.