Quarterly Report For The Financial Period Ended 30 September 2018

Financials Archive

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Unaudited Condensed Statement of Profit or Loss and Other Comprehensive Income For The Quarter Ended 30 September 2018

income statement

Unaudited Condensed Consolidated Statement of Financial Position As At 30 September 2018

balance sheet

Review of Company Performance

For the current financial quarter under review, the Group posted revenues of RM32.89 millionas compared to its preceding year's corresponding quarter ended 30 September 2017 of RM30.18 million. Despite the increase in revenues, profit before tax ("PBT") during the current quarter dropped to RM2.4 3 million, representing a decrease of RM0.4 million from its preceding year's corresponding quarter ended 30 September 2017 of RM2.83 million.

Overall the decrease in the PBT despite an increase in revenue, were mainly attributed to the increase instaff costs following the hire of additional staff and increase in finance costs.

Comparison with Immediate Preceding Quarter Results

balance sheet

The Company recorded higher gross profit of RM6.04 million for the current quarter as compared with RM7.28 million in the previous quarter ended 30 June 2018 mainly due to lower gross margin and lower revenues.

The Group's profit before tax of RM2.43 million for the current quarter was 45.8% lower than the RM4.48 million achieved in the previous quarter ended 30 June 2018. The decrease was mainly due to the decrease in revenues and other income, but higher staff costs and finance costs.

Prospects for the Financial Year

The Company will continue to focus on the following future plans and business strategies for the future growth and expansion of its business:-

  1. grow its market share in Malaysia by increasing tendering activities, focusing on affordable housing sector and geographical expansion;
  2. strengthen its capabilities by growing its mechanical engineering services segment;
  3. diversifying its revenue stream by providing maintenance services including upgrading, expansion, refurbishment, retrofitting and renovation projects; and
  4. In the area of technology innovation, we are planning to collaborate with a software specialist to develop our own proprietary Internet-of-Things (IOT) based software that can monitor ventilation and air-conditioning systems in order to enhance operational efficiencies and reduce cost.

As at 30 September 2018, the Company’s order book, contracts secured and tenders are as follows:-

  1. order book balance is approximately RM262 million;
  2. total value of contracts secured is approximately RM49 million; and
  3. approximately RM214 million worth of tenders still pending.

The Board of Directors is of the opinion that the Company’s financial performance for the current year to be satisfactory.