It is expected to register stronger results in the second half ending Dec 31 due to spillover earnings once delayed projects were finalised and approved.
Its first-quarter revenue and net profit results registered declined growth of -17.4% year-on-year (to RM20.6mil) and -28.9% (to RM6.4mil), caused chiefly by project delays such as its IC Citizen extension, ProELT and SmartGreen projects.
Prestariang’s education farm, UniMy, continued to incur pre-tax loss of RM1.74mil and that management had identified an equity partner, believed to be one of the government bodies, which would be injected to grow student enrolment and minimise the losses.
Further details of this new shareholder would be announced by the third quarter 2014.
Its management was targeting to break even by year-end (2014).
Prestariang’s oil and gas training firm remained intact and was expected to train a total of 500 students with an internationally-recognised certificate. Once it developed its in-house programme, subsequent profit to be made was lucrative.
Besides that, management was targeting to have this division to contribute 20% of the group revenue for the financial year ending Dec 31, 2015 (FY15).
There was also huge potential for Prestariang to tap into Petronas-related jobs as all local and foreign workers were required to obtain the health, safety and environment certification.
Prestariang was apparently in the midst of bidding for a substantial concession-based project, which would provide the company recurring revenue and serve as a re-rating catalyst to the stock.
Overall, with all its projects approved and remaining intact, observers expect Prestariang to stage improving earnings growth in FY15.
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