Wednesday, 24 June 2015
38th Annual General Meeting
Shah Alam, Wednesday: Kumpulan Perangsang Selangor Berhad (Perangsang Selangor) is actively exploring potential new businesses and investment to secure future growth whilst enhancing values for the benefit of our shareholders.
We remain confident in the long-term growth prospects of the telecommunications and energy industry in view of the anticipated increase in demand for both products over the next few years.
Over a period of four years from 2011 to 2014, we have moved on from addressing legacy business issues to strategising initiatives to promote growth and boost share value.
We are now focussing our resources on investing into the future whilst remaining focussed on present developments
The Group registered consolidated profit before tax and zakat of RM130.27 million compared with RM290.90 mil recorded in 2013. The RM160.63 million drop in profit is mainly attributable to the recognition of gains arising from the completion of divestment activities involving the Group’s property development subsidiary Kumpulan Hartanah Selangor Berhad (Hartanah Selangor).
The Group recorded an increase in revenue amounting to RM314.03 million compared with RM302.29 million recorded the previous year, registering a favourable variance of RM11.74 million arising from increased contributions from the Infrastructure & Utilities, Trading and Investment Holding sectors.
The three sectors namely Infrastructure and Utilities, Trading and Investment Holding, respectively registered increase of 6%, 8% and 3% in revenue. The revenue increase in these sectors partially offset the drop in revenue recorded in the Hospitality, and Golf Club & Recreation sectors. Overall, the Group saw a slight increase of 3.9% in total revenue.
The Board continues to maintain a conservative approach in dividend disbursement policy in order to ensure sufficient funds are retained to support continuous business growth whilst ensuring reasonable returns to shareholders.
The Board recommends a 2 sen per share dividend, pending shareholders’ approval at the Annual General Meeting
With the impending divestment involving Konsortium ABASS Sdn Bhd (ABASS) and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH), the Group is actively pursuing new investment opportunities to continuously secure profit.
The restructuring of the water services sector in Selangor is still in progress. Pending completion of the restructuring exercise by the State and Federal Government, this sector continues to be a major contributor to the Group’s earning and profit for the 2014 financial year. ABASS generated RM220.77 million in revenue, charting a 7% increase from RM207.10 million recorded during the previous financial year. Despite the higher revenue, ABASS recorded a decrease of RM38.11 million in profit before tax due to higher impairment loss on trade receivables in the current financial year.
In the trading sector, Aqua-Flo Sdn Bhd generated RM55 million in revenue from sales of chemicals for potable water industries in Peninsular and East Malaysia, recording an 8% increase compared with the previous year.
Perangsang Selangor’s investment in the Malaysian domestic liquefied petroleum gas (LPG) market under the “Mira” brand name through wholly-owned subsidiary Perangsang Oil and Gas Sdn Bhd, which holds a 40% equity stake in NGC Energy Sdn Bhd (NGC Energy), contributed positively to the Group’s financial performance with a RM1.5 million share in profit.
Perangsang Selangor’s investment in the telecommunications sector via Ceres Telecom Sdn Bhd is expected to contribute positively to the Group’s financial performance in 2016. Ceres had in September 2013 launched its FRiENDi pre-paid mobile service through a joint venture agreement with Virgin Mobile Middle East and Africa.
While focusing on goals and plans to sustain existing businesses, we remain committed to tapping new growth areas that are within our well-defined commercial criteria and risk parameters. We remain confident in the long-term growth prospects of the telecommunications and energy industry, as we believe we will see an increase in demand for both products over the next few years.
YM RAJA DATO’ HAJI IDRIS RAJA KAMARUDIN
Chairman
24 June 2015
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