KUALA LUMPUR (June 28): Eco World International Bhd's (EWI) net loss widened to RM29.08 million in the second financial quarter ended April 30, 2018 (2QFY18) from RM24.82 million a year ago, due to a foreign exchange (forex) loss which arose in the current quarter under review compared with a forex gain recorded in 2QFY17.

Loss per share was lower at 1.21 sen for 2QFY18 compared with 2.43 sen for 2QFY17.

EWI recorded RM698 million sales in the first seven months of its financial year ending Oct 31, 2018 (FY18).

In a filing with Bursa Malaysia today, EWI said its projects in London contributed RM546 million, while those in Australia generated RM152 million. As at May 31, 2018, the group's effective share of unbilled sales stood at RM6.076 billion.

There was no revenue recorded in 2QFY18. The revenue of RM37,000 for 2QFY17 arose from fees for marketing services rendered by a subsidiary to the group's joint venture (JV) in respect of property sales of its projects in the UK.

"Revenue and profits associated with the group's property development activities will be recognised by its subsidiary and JV when the construction of the relevant units are completed and delivered beginning next month," said EWI.

For the cumulative six months ended April 30, 2018 (1HFY18), the group's net loss also widened to RM45.28 million from RM30.88 million a year ago, mainly due to the forex gain of RM48.24 million recorded in 1HFY17. Revenue stood at RM18,000 compared with RM364,000 in 1HFY17.

Going forward, EWI said the second half of FY18 will be a significant time for the group as handovers of residential blocks in London City Island and Embassy Gardens are expected to commence next month.

"These handovers will enable the group (via its respective JV entities) to convert a substantial portion of the unbilled sales into revenue, thereby allowing the group to recognise its maiden profit in the current financial year (FY18)," it added.

The construction works of other blocks in London City Island and Embassy Gardens are also well underway with four additional residential blocks in the former and one in the latter scheduled for completion in FY19. Their completion will further boost the group's profitability next year.

Beyond that, the completion of Wardian, West Village and Yarra One is expected to contribute to the group's profitability in FY20, said EWI.

EWI shares ended the morning session down 2 sen or 2.17% at 90 sen, with 367,500 shares traded, bringing a market capitalisation of RM2.15 billion.