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
total combined sales
of RM4.6 billion for
its financial year
ended 31 October
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