YTL Group Executive Chairman Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, said, “The Group’s performance remained satisfactory during the financial year ended 30 June 2018 in the face of ongoing pressures in some of Group’s main operating industries. Our key utilities segment registered increases in revenue and profit before taxation contributed primarily by the water and sewerage division in the United Kingdom and the contracted power generation sub-segment in Malaysia.
“Higher revenue owing to improved sales volumes in all divisions of our cement business was offset by higher selling, distribution and financing costs and competitive pricing in the domestic market which resulted in lower profit before tax. The construction segment also achieved higher revenue due to the significant increase in construction work, although profit before tax was impacted by the absence of a one-off gain from an arbitration award recorded in the previous financial year.
“In the hotels segment, there was an increase in revenue contributed mainly by better performance of The Hotel Stripes, Kuala Lumpur, Niseko Village in Japan, the Sydney Harbour Marriott in Australia and 3 new hotels in the United Kingdom. However, the hotels segment saw a decrease in profit before tax due to higher unrealised foreign exchange losses on inter-company balances and pre-opening and training expenses incurred in relation to a newly opened hotel, The Ritz-Carlton, Koh Samui.
“Meanwhile, the property segment saw a decrease in revenue upon its stable of projects under development reaching completion, with the loss before tax due mainly to lower net realisable value of inventories held under the 3 Orchard By-The-Park project and a change in the fair value of investment properties recorded by Starhill Global REIT in Singapore.
“The Group’s management services segment recorded an increase in revenue due to higher interest income but incurred a loss before tax arising mainly from the absence of the one-off accounting adjustments relating a loan restructuring exercise undertaken by an associated company recorded last year, as well as higher finance costs and fair value changes in investments and derivatives incurred by YTL Power.”...