KUALA LUMPUR (June 10): Practice Note 17 (PN17) outfit Ageson Bhd (KL:AGES) said it has secured a RM75.67 million contract to undertake a construction project in the Sepang district of Selangor.

The project, awarded by construction company Mateen Group Sdn Bhd, is for the construction of a main building at Kampung Limau Manis, a Malay reserve land near Putrajaya.

Ageson did not provide further details about the building in its bourse filing on Monday.

It said it is responsible for providing labour, materials, tools, equipment and machinery for the project, with the contract expected to last 42 months upon obtaining building plan approval.

Ageson expects the contract to positively impact its future earnings and consolidated net assets.

This is Ageson’s second construction contract secured within two weeks, following its recent RM54.33 million construction sub-contract for a 40-storey service suite block in Sabah on May 29.

Ageson was classified as a PN17 company in November 2023, due to concerns flagged by its external auditor, Jamal, Amin & Partners, regarding its receivables, subsidiaries’ revenues, and asset valuations. The company has until November this year to submit its regularisation plan to the relevant authorities.

Ageson reported a net profit of RM2.65 million, or 0.85 sen per share, for the three-month period ended March 31, 2024, on revenue of RM6.94 million, primarily from its construction segment.

For the 15-month period ended March 31, 2024, Ageson recorded a net profit of RM3.94 million, on revenue of RM36.24 million.

Due to a change in its financial year end from June 30, 2022 to December 31, 2022, there is no comparative financial information for the previous year’s corresponding period.

Shares in Ageson closed 4% higher at 13 sen on Monday, gaining half a sen, with the group’s market capitalisation standing at RM38.96 million.