GRAND-FLO Bhd stated that higher contributions from its property business had enabled it to return to profit in its third quarter ended Sept 30, 2020 (3Q20), with a net income of RM1.23 million against a loss of RM417,000 in 2Q20.

On a nine-month period, net profit amounted to RM859,000 against a net profit of RM5 million in the corresponding period last year, its recent exchange filing stated.

Turnover for the quarter increased 10.6% year-on-year to RM20.13 million from RM18.23 million, driven by a 10.4% rise in revenue from its property development division to RM20.1 million from RM18.2 million in the corresponding period a year ago.

Grand-Flo executive chairman and group MD Datuk Seri Yap Ngan Choy said the strong performance achieved during the quarter reflects the success of the group’s decision to focus more on its property development unit.

“The initiatives undertaken by the group are starting to bear fruit, and this is reflected in the strong contribution of our property development division, particularly as a result of new development projects under our belt.

“The division continued to deliver profitable and sustainable earnings for the first three quarters of the year, with double-digit net profit margins,” he said in a statement.

Yap said the group is entirely focused on strengthening its property development business following the disposal of their enterprise data collection and collation system segment.

“Leveraging our technical skill set, vast experience and expertise in the sector, Grand-Flo aims to steer property development as our core business stream,” Yap noted in the release.

Despite a challenging outlook, Yap said the group is confident its net cash position and expertise as a project rehabilitation specialist will put the company in a good position to offer competitive bids in this segment.

“We remain single-minded in creating sustainability and profitability for the rehabilitation of abandoned projects, with a view towards supporting local property ownership,” he said.

Grand-Flo is driven by a management team with over 20 years of experience in the property development world, specialising in rehabilitating mega abandoned development projects.

The group was previously involved in the recovery of a 127.5ha township in Bandar Baru Salak Tinggi, Selangor, and the recovery of Genting Highlands Billion Court, an abandoned housing development project in Pahang.

Grand-Flo’s share price ended half a sen or 2% lower at 24 sen yesterday, valuing the group at RM129.89 million.