• Operating Background
The financial year ended 2011 saw a more stable
environment in the property and construction sectors.
However, major construction material prices increased
between 5% to 20% with the exception of clay bricks
which increased by approximately 60%. The Group
experienced increased competition with several projects
being held back or the contract awarding stage (from time
of tender submission) being delayed.
• Review of Results
For the financial year ended 30 June 2011, the Company
faced several difficulties in form of client approved delays
and shortage of certain skilled labour. With the completion
of one of our major projects, revenue has decreased by
39% to RM198.27 million from RM324.27 million as
compared to the previous year. The Group’s Continuing
Operations recorded pre-tax losses of RM14.57 million for
the year against a pre-tax loss of RM9.43 million in 2010.
These pre-tax losses are due construction costs estimates
adjustment for variation in materials prices and costs of
construction written off on certain completed projects
where recoverability is deemed uncertain.
As of 30 June 2011, the Group’s outstanding construction
contracts stood at RM280 million.
• Prospects
Despite the difficulties faced by the Group, it has
maintained its good track record, reputation, confidence
of its clients and financiers to ensure continued business
growth. We look forward to a better year ahead and will
continue to actively tender for local construction projects
and seek property development investment opportunities.
The Group is confident it will be able to secure
new construction contracts and resume its property
development activities in the coming year.
• Dividends
The Directors have not recommended any payment of
dividend for the financial year ended 30 June 2011.
• Acknowledgement
I take this opportunity to extend my sincere gratitude
to my fellow Directors and management team for their
dedication and commitment in their work. Similarly, to
our valued customers and shareholders, thank you for your
support and confidence in the Group.
