Property development company GRP Limited announced, on May 1, that it has appointed a new main contractor, RSK Global Visions (M) Sdn Bhd, to complete its affordable housing project in Seri Iskandar, Perak. RSK Global Visions will replace the project' s former main contractor, Energiser Enterprise Sdn Bhd (EESB). The total contract sum is RM92.83 million or around $28.1 million.

 

In light of the foregoing award of contract and after a preliminary review of the group' s unaudited financial results for 3QFY2025 ended March 31, the group says it is expecting to report a " significant net loss" for the quarter, compared to the same period the year before. In the 3QFY2024, GRP also reported a loss of $585,000, 61.2% higher than the loss of $363,000 in the corresponding period the year before.

 

The net loss is mainly due to higher total project costs and liquidated and ascertained damages from the delay in project completion, says GRP.

 

On June 10, 2024, GRP' s 70%-owned indirect subsidiaries, Rumah Kami Sdn Bhd and Ratus Nautika Sdn Bhd, received two statutory demands. One of them was from EESB, which issued a statutory demand to Ratus Nautika for the payment of RM3 million, the retention sum under a letter of award dated July 26, 2021.

 

" Should payment not be made within 21 days of receipt, EESB has the right to commence winding-up proceedings against Ratus Nautika without further notice," said GRP at the time. It added that its legal advisers said that the demand was " defective" since the sum was not due for payment yet.

 

EESB was also to withdraw the defective demand and Ratus Nautika had accrued for the retention sum on its account at the time. In its June 2024 announcement, GRP noted that the amount had not been paid to EESB as the project was still ongoing.

 

On Aug 8, 2024, EESB served a winding-up petition on Ratus Nautika for not paying the sum it requested. EESB also issued a letter to Ratus Nautika stating that it intended to suspend the execution of works.

 

On Dec 11, 2024, EESB withdrew the winding-up petition, which was then struck off and dismissed.

 

On Feb 10 this year, Ratus Nautika had asked EESB to " rectify various defects and defaults" in relation to the affordable housing project. " As EESB had not done so within the contractual cure period, Ratus Nautika has issued a notice of determination dated Feb 10, 2025, erminating EESB' s appointment with immediate effect," said GRP.

 

It added that it was sourcing for a new contractor to carry on and complete the project.

 

On Feb 20, GRP said that Ratus Nautika formally issued a request for arbitration to EESB " in accordance with the relevant arbitration rules stipulated in the contract between the parties" .

 

On April 1, GRP announced that EESB filed a civil suit against Ratus Nautika and its directors at the Ipoh High Court and subsequently obtained an ex-parte Mareva Injunction Order to prevent GRP' s subsidiary from withdrawing or utilising up to the sum of RM3.7 million from its business account, investment account and other current accounts of Ratus Nautika in Malaysia except for its mandatory designated Housing Development Account (HDA). There was also an order for Ratus Nautika to " affirm and file an affidavit providing details of its business account, investment account and fixed deposit account in Malaysia except for the HDA account" .

 

At the time, GRP said it has engaged legal representation in Malaysia and intends to " vigorously contest and challenge EESB' s civil suit and injunction application" .

On Apr 18, GRP : BLU +2.22% executive director Kwan Chee Seng acquired 299,100 shares at S$0.09 per share. With a consideration of S$26,919, this increased his total interest in the group from 35.84 per cent to 36.01 per cent. This followed his acquisition of 406,100 shares at S$0.09 per share between Mar 15 and 16.

 

The principal activities of the group are property development, sales of hose and marine products, and sales of measuring instruments/metrology.

 

Kwan was appointed an executive director in March 2013 and is responsible for the group&rsquo s business development. He has extensive experience in management and investment, particularly in mergers and acquisitions (M& A).

 

Besides being the chairman of Van der Horst Holdings, his investment holding company, Kwan has been a substantial shareholder of ASX-listed Variscan Mines since 2008. Kwan is also a non-executive director of Luminor Financial Holdings. In 2009, Kwan began his fund management business with Luminor Capital, a manager of private equity funds, as a founding director. As relayed in the annual report, Kwan brings to the board a unique set of skills with an M& A angle.

Between Mar 15 and 16, GRP : BLU 0% executive director Kwan Chee Seng acquired 406,100 shares at an average price of S$0.09.

 

With a consideration of S$36,605, this increased his total interest in the group from 35.62 per cent to 35.84 per cent.

 

The principal activities of the group are property development, sales of hose and marine products, and sales of measuring instruments/metrology.

 

Kwan was appointed as an executive director in March 2013 and is responsible for the group&rsquo s business development.

 

He has extensive experience in management and investment, particularly in the field of mergers and acquisitions.

 

Besides being the chairman of Van der Horst Holdings, his investment holding company, Kwan has been a non-executive director and substantial shareholder of ASX-listed Variscan Mines since 2008.

 

He is also a non-executive director of Starland Holdings, a 99.56 per cent indirect-owned subsidiary of GRP.

 

In 2009, Kwan began his fund management business with Luminor Capital, a manager of private equity funds, as a founding director.

 

In February, GRP noted that the Covid-19 pandemic had adversely impacted all the business segments of the group, and the hose & marine segment continued to face shortages in hose supplies due to supply chain disruptions, because of Covid-19.

 

The group said its business outlook for the next 12 months was still expected to remain challenging although supply-chain improvements and replenished inventories may have positive impact and the group will continue to focus on cost containment and operation efficiency to mitigate global inflation pressure and to improve workflow and processes to minimise the supply chain disruptions.

 

GRP reported its group revenue of S$10.08 million for H1FY23 (ended Dec 31), was 46 per cent higher than the S$6.90 million revenue for H1FY22, resulting in a narrower loss before tax of S$0.75 million in H1FY23) compared to a loss before tax of S$1.43 million in H1FY22.