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48 | S P SETIA BERHAD GROUP | Annual Report 2014

The slower rate of increase in PBT compared

to the percentage increase in revenue is

mainly due to a mismatch between initial

expenses incurred and revenue recognition

in the United Kingdom and Australia as

revenue is recognised at a point in time

when the construction of the assets

are completed and handed over to the

customers. It is also due to the Goods and

Services Tax (GST) financial impact of RM47

million charged out during the FY2014.

The Group sales performance in FY2014

has grown the total unbilled billings to be

carried forward to FY2015 to RM11.1 billion,

which will contribute strongly to the Group’s

earnings and cash generation over the next

few financial years.

For the year under review, the Group

recorded strong sales performance

despite challenging environment with total

combined sales of RM4.6 billion for its

financial year ended 31 October 2014. This is

due to the Group’s clear strategic direction

with ventures into global cities as well as

an established brand name and innovative

products range. 40% of the Group sales is

represented by international sales namely

Fulton Lane and Parque at Melbourne, Eco

Sanctuary and 18 Woodsville at Singapore

and Battersea Power Station at London.

Battersea Power Station, S P Setia’s joint

venture project in the United Kingdom, with

Sime Darby Berhad and the Employees

Provident Fund (EPF), continues to generate

strong sales and keen interest worldwide.

Launch of Phase 2 proved to be a great

success with a take up rate of 85% to date.

Meanwhile, the simultaneous global launch

of Phase 3a in October 2014, carrying the

momentum from Phase 1 and Phase 2,

resulted in 50% take up rate within 3 weeks

of the launch and is expected to contribute

significantly to FY2015 sales.

On top of that, S P Setia further stamps its

brand presence in the international front with

the unveiling of Malaysia Square, the public

The Group

recorded strong

sales performance

despite challenging

environment with

total combined sales

of RM4.6 billion for

its financial year

ended 31 October

2014.

III. business Review

Dear Valued Shareholders,

The Group achieved a profit before taxation (PBT) of RM722.4

million on the back of revenue totalling RM3.8 billion. This

represents a 10% increase in PBT and 17% increase in revenue as

compared to the preceding year.

Battersea Power Station

EcoHill

Chairman’s Statement