Paramount Corp aims higher contribution from recurring income business

SHAH ALAM: Paramount Corp Bhd aims to expand the revenue contribution from its non-core and recurring income business, especially co-working space, to between 10 per cent and 15 per cent from five per cent currently.

“We know that we are in the new era of investment, hence we are moving partially into new business and co-working space is the solution,” group chief executive officer and director Jeffrey Chew Tun Seong told reporters at the briefing of Paramount’s first-half 2019 financial results and prospects.

Chew said the company aims to double its co-working space, which was branded under the name of Co-labs Coworking, to 200,000 sq ft within the next one and half years.

The company is allocating capital expenditure of between RM3 million and RM4 million for each Co-labs Coworking to open up between two and four centres every year.

He said the company, which now has several facilities in Klang Valley, is looking up to expand into Penang and Johor as well.

The group’s existing Co-labs Coworking spaces are within Shah Alam’s Glenmarie and Sekitar 26 enclaves besides The Starling mall in Petaling Jaya and Naza Tower within the Kuala Lumpur City Centre.

“We hope that this business (co-working) can get RM20 million to RM30 million in terms of revenue for the next three to five years. We have secured a turnover of RM1.3 million for the first half of this year. For the full-year, the number will double to RM3 million to RM4 million as we have more locations.

“Next year, we are looking to further grow the number to RM12 million to RM15 million,” he said.

Meanwhile, Chew said the company had maintained its new property sales target of RM1 billion in 2019 to be driven by RM900 million new launches during second half of the year.

As at end-June 2019, the group had unbilled sales of about RM978 million.

“In the first half of 2019, the group has secured property sales of some RM310 million compared to about RM600 million new sales recorded in the first half of last year,” he said.

Source: NST