SILK Holdings Bhd has recorded a higher profit of RM12.4 million for its fourth quarter ended July 31, 2010, compared to RM6.6 million in the same period last year.

On a full-year basis, the company posted a profit of RM30.9 million, a marginal improvement over the RM30.6 million in the previous year, as adjusted to meet the requirements of FRS 3 following the acquisition of AQL Aman Sdn Bhd.

Revenue increased by eight per cent to RM223.9 million from RM206.7 million previously, Silk Holdings said in a statement today.

'The group has closed the financial year on a strong note,' said chairman Datuk Mohd Azlan Hashim.

'Bearing in mind that the comparative results reported have been adjusted to meet the requirements of accounting standards to reflect the acquisition of AQL Aman as part of the restructuring undertaken, the overall improvement for the financial year appears to be modest,' Mohd Azlan said.

'If, however, the performance is compared to the actual unadjusted performance of Silk, as reported to the shareholders previously, the improvement in performance for the financial year 2010 is even more significant. The current year results clearly indicate a successful turnaround of the group,' he said.

During the fourth quarter, the highway division reduced its after-tax losses to RM4.6 million from a loss of RM6.1 million in the preceding year's corresponding quarter, representing a 25 per cent decline in losses.

On a full-year basis, the division managed to reduce its after-tax losses by 27 per cent to RM26.2 million from RM35.7 million in previous year.

A steady increase in traffic flow during the period under review enabled the highway division to improve operational performance, the group said.

For the fourth quarter, the oil and gas support services division posted a lower profit of RM3.6 million compared with RM6.6 million in the preceding year's corresponding quarter.

However, on a full-year basis, the division recorded a higher profit of RM38.7 million compared with RM30.6 million in the preceding year, representing a 26 per cent increase in profitability. - BERNAMA