Jack-In Group Limited (ASX: JIP) announced that it has won the sub-contract package works for the paper and pulp industry hub project in the State of Selangor, Malaysia at a contract value of MYR22,130,274.70 (AUD7,376,758). The company through its wholly owned subsidiary Jack-In Pile (M) Sdn Bhd has accepted the Letter of Award to provide the requisite information about the work-flow and complete the piling works for the project.
As per the Letter of Award, under the contract term with client Sing Foong Niap Engineering Sdn Bhd, specific works to be completed by May 4, 2019. In payment terms, the monthly progressive payment is concluded on a percentage of completion. A defects liability period is six months from the date of Certificate of Practical Completion. Additionally, there are no further conditions that need to be satisfied before the contract becomes binding. The Letter of Award together with JIP’s tender documents shall constitute a binding contract between JIP and the Employer.
As per the termination clause, the contract is governed by the terms and conditions of the Letter of Award, whereby the contract may be terminated by the employer, if the contractor becomes insolvent or without reasonable cause fails to commence work, suspends his work, refuses to comply with instructions or abandons work.
As per the release, the project is anticipated to generate total revenue of MYR 22,130,274.70 (AUD 7,374,758) and a gross profit of around MYR 1,549,119.00 (AUD 516,373) towards JIP for the financial years ending March 31, 2019, and March 31, 2020. (1 AUD = 3 MYR)
In the previous update, the company won Bandar Cassia Phase 1 housing project in Malaysia by Eco Horizon Sdn Bhd at a contract value of MYR 7,060,734.20 (AUD 2,353,578). Under the agreement, specific works have to be completed by June 14, 2019. Defects liability period is 12 months from the date of the Certificate of Practical Completion. This project is expected to generate total revenue of MYR 7,060,734.20 (AUD2,353,578) and a gross profit of around MYR 564,859.00 (AUD 188,286) towards Jack-In Group for the financial years ending March 31, 2019, and March 31, 2020.
It also secured the sub-contract package works for the commercial development project in the State of Selangor, Malaysia at a contract value of MYR 7,665,845.50 (AUD 2,555,281.83). As per the agreement, specific works were to be completed by March 2, 2019. Defects liability of 24 months period from the date of Certificate of Practical Completion was applicable. The project is expected to generate a revenue of MYR 7,665,845.50 (AUD 2,555,281.83) and a gross profit of around MYR 613,000.00 (AUD 204,333.33) towards Jack-In Group for the financial year ending March 31, 2019.
On stock information, the stock of Jack-In-Group was placed in a voluntary trading halt last year due to the release of an announcement by the company. From then, its securities remained suspended in accordance with Listing Rule 17.3, pending the announcement by the company to provide an announcement clarifying audit matters with its auditors on its financial accounts for the year ending March 31, 2018. JIP’s shares last traded at $0.050 with the market capitalization of ~$20.11 Mn as on 23 April 2018.
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