G Capital's school bus service contract with Mindef extended for another year

KUALA LUMPUR (Jan 3): G Capital Bhd said its two-year contract for the chartering of school buses for the children of armed forces personnel has been extended by another year at an additional value of RM8.41 million.

The contract with the Ministry of Defence (Mindef) now ends on Dec 31, 2023, with the total value rising to RM52.64 million from RM44.23 million.

The group's wholly-owned unit, GPB Corporation Sdn Bhd, signed the supplemental agreement with Mindef on Dec 30, said G Capital in a filing with Bursa Malaysia.

G Capital provides transportation services to children of armed forces personnel spreading over 10 zones and 76 camps, with over 300 buses involved, the group said on its website.

“As at Dec 31, 2022, the group has recognised revenue of RM35.24 million from the agreement with Mindef. The supplemental agreement has an unearned revenue potential of RM17.39 million to be realised for the financial year ending Dec 31, 2023 (FY2023).

“Save for the above, the supplemental agreement is not expected to have any material impact on the earnings and net assets of the group for FY2023,” G Capital said in its filing.

G Capital's share price settled 1.5 sen or 3.33% higher at 46.5 sen, giving the group a market capitalisation of RM149.12 million.