Petaling Jaya, 26 May 2016: IJM Corporation Berhad (“IJM”) today declared a special dividend of 3 sen per share in addition to a single tier second interim dividend of 4 sen per share. The special dividend was declared after significant one-off gains, amounting to RM301.9 million, were derived from the sale of the Group’s stake in two Indian tollway assets in the financial year. Combined with a single tier first interim dividend of 3 sen declared in November 2015, total dividend declared for this financial year amounts to 10 sen per share.

Group CEO & Managing Director, Dato’ Soam Heng Choon, said that “The special dividend was a means for our shareholders to directly participate in the crystallisation of value from the Group’s investment assets.” Underscoring his confidence in IJM’s ability to grow long term shareholder value, he added “Morever, the total interim dividend of 7 sen per share declared in FY2016 represents an increase from the 15 sen per share last year, after taking into account the expanded share capital base due to new shares issued as part of the consideration for the privatisation of IJM Land and the subsequent 1:1 bonus share issue to reward shareholders in 2015.”

IJM also released its financial results for the year ended 31 March 2016 on the same day. Group consolidated revenue stood at RM5,128.2 million, representing a decrease of 5.9% from RM5,448.3 million reported last year mainly due to lower revenue from the Property Development and Plantation divisions. The Group’s reported PBT increased 13.4% to RM1,155.8 million from RM1,019.4 million last year arising mainly from one-off gains from the disposal of equity interests in subsidiaries and fair value gain on remeasurements of its equity interests in Jaipur Mahua Tollway Private Limited and Swarna Tollway Private Limited totalling RM301.9 million in the current year.

The Construction Division recorded higher revenue at RM1,411.2 million as compared to RM949.9 million last year following increased contributions from projects that were secured in the previous financial year. The Property  evelopment Division recorded lower revenue at RM1,185.0 million as compared to RM2,116.2 million in the previous year in line with lower sales recorded while revenue of the Manufacturing and Quarrying Division increased by 6.2% to RM979.8 million due to increased delivery of piles. The Infrastructure Division recorded revenue at RM991.1 million, an increase of 25.3% from last year, due to increased port cargo throughput as well as continued traffic growth seen at its toll operations. As a result of lower CPO sales volume and lower commodity price during the year, the Plantation Division also posted revenue of RM557.6 million, a 16.5% decrease as compared to RM667.7 million in the previous year.

PBT of the Construction Division decreased 7.7% to RM170.6 million as compared to the previous year mainly due to forex losses of RM4.7 million. Pre-tax profits for the Property Development Division decreased by 67.8% to RM159.3 million from last year mainly due to the decrease in sales, lower gross profit margin as well as one-off gains amounting to RM22.7 million in the preceeding year. The Manufacturing and Quarrying Division saw a minor decrease of its pre-tax profits to RM124.1 million mainly attributable to lower margins in the quarrying and ready-mixed concrete sectors. PBT of the Plantation Division decreased to RM50.4 million from RM89.4 million primarily due to the lower commodity price and lower FFB production from the prolonged dry weather.

In addition to higher traffic growth at the toll operations and cargo throughput at Kuantan Port, the significant increase in profits of the Infrastructure Division were largely attributable to the disposals and fair value gains on the remeasurements of its equity interests in Swarna Tollway Private Limited and Jaipur Mahua Tollway Private Limited totalling RM301.9 million.

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About IJM Corporation Berhad
IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on the main board of Bursa Malaysia. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.

Headquartered in Selangor, its operations are located in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation in excess of RM12 billion and as of March 2016, the Group employed around 4,600 employees and had total assets of RM19.8 billion.

The Group’s belief in a shared destiny with its employees remains pivotal to its growing success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development.