Vivocom reports drop in profit for Q1 2017; aluminium division grew 81%

<p>Vivocom International Holdings Bhd, a supplier of telecommunication engineering, construction and aluminium design and fabrication services reported fall in net profit in the first quarter 2017 to RM5.24 million from RM19.87 million in Q1 2017, driven by a slump in construction revenue.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/vivocom.jpg" alt="News" width="597" height="240" /></p> <p>The drop was partially offset by stronger topline from both its telecommunications and aluminium segments, the company statement said. The telecommunications sector grew 11% to RM8.54 million and the aluminium sector grew 81% to RM14.57 million.</p> <p>The telco division accounted for 20.8% of the group's revenue in 1QFY17, while the aluminium segment contributed 35.5% of revenue. Construction was the major contributor at 43.7%.</p> <p>The group is expected to stay busy for the next two to three years in completing numerous projects awarded under both its aluminium and construction segments.</p> <p>{googleAdsense}</p> <p>Notably, in April 2017, Vivocom bagged three contracts totalling RM44.71 million for setting up aluminium and glazing works at two different locations.</p> <p>"In view of these positive developments and the group's strong order book, barring any unforeseen circumstances, the board is optimistic of achieving a satisfactory performance for the current financial year ending Dec 31, 2017," the company statement concluded.</p>