BDB’s recurrent income stream will be strengthened when the Langkawi Designer Premium Outlet is completed by 2024. Located on a 41-acre site leased from the Langkawi Development Authority (LADA), Phase 1 of the project is nearing completion while Phase 2 of the development, the key component of the project, is expected to commence construction in 3Q2022 and to be completed by 2024. Phase 2 will have gross rental revenue of RM817 million over the 25-year concession period. In property development, BDB had ongoing projects with gross development value (GDV) of RM82.2 million and a take-up rate of 87% as at end-2021. Its unbilled sales of RM24.6 million provide earnings visibility through 2023. The group has been successful in reducing its inventory level, standing at RM8.3 million as at end-2021 (end-2020: RM16.0 million).
Group performance is characterised by construction progress, reduction of completed property inventories, and recurrent revenue from road maintenance. Revenue registered a decline of 5.4% y-o-y to RM207.7 million and pre-tax profit by 8.2% y-o-y to RM7.8 million, mainly due to pandemic-induced closures. Its leverage has improved consistently; borrowings declined to RM105.0 million, translating into a low debt-to-equity ratio of 0.22x as at end-2021. Unencumbered cash balance of RM57.9 million is sufficient to meet its near-term borrowings obligation of RM25.5 million. BDB distributed dividend of RM2.3 million during the year, for the first time since 2018. For 1Q2022, BDB recorded pre-tax loss of RM6.0 million on revenue of RM31.5 million, mainly due to the timing of its progress billings on the state road maintenance project.