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P E R F O RM A N C E
22
Revenue
FYE2017
(RM‘Million)
FYE2018
(RM‘Million)
Manufacturing
233.35 140.78
Plantation
133.21 138.10
Property Management
5.54
5.77
TOTAL
372.10 284.65
PBT
FYE2017
(RM‘Million)
FYE2018
(RM‘Million)
Manufacturing
59.61
25.48
Plantation
(0.55)
41.07
Share of Results of Associate
2.69
1.70
Property Management
0.77
0.49
Others
(1.26)
(5.44)
TOTAL
61.26
63.30
chairman’s statement
Group Earnings Before Interest and Taxation (“EBIT”) increased
3.4% to RM63.41 million. Earnings per share and net assets per
share stood at 14.98 sen and RM2.27, respectively.
As at 31 March 2018, we have cash and bank balances of
RM165.60 million and short term cash investments of RM43.88
million. Our capital expenditures totalled RM9.91 million.
A more detailed review of the results and the operating
performance for the year of each of the Group’s business
divisions is presented on pages 28 to 34 of this Annual Report.
Dividend
The Board is pleased to recommend for shareholders’ approval
a final single-tier dividend of 7.5 sen per share for the financial
year ended 31 March 2018 at the forthcoming Annual General
Meeting. If approved at the forthcoming Annual General Meeting,
the dividend will be paid on 20 September 2018 to shareholders
whose names appear on the register as at 3 September 2018.
Sustainability
Besides improving our financial outcomes, we are also stepping
up our sustainability aspirations. FYE2018 has been a busy year
for our sustainability programme as we have been formalising
and communicating our approach. There is still much to do but
we are happy with the progress that has been made; in particular,
the support our employees have given. In the coming year, we
will give higher profile to the communication of different aspects
of our sustainability programme to our employees as we intend
to set measurable environmental targets.
Key Focus Areas
Our strategic plan remains the same, which is to create
meaningful growth in each of our business segments and to
deliver sustainable returns by organic and expansionary growth,
solid return on capital employed and strong cash generation; to
be supported by cost control and efficient practices across the
Group. Looking to the immediate future our priorities will therefore
be on growing the bottom line through improving operational
efficiencies and ensuring timely completion of projects under
development. We are also investing in technology and systems
to provide the platform that will allow the Group to grow through
better management information.
Over the mid to long term, we remain acquisitive in nature and
will continue to seek and pursue opportunities to fulfil our growth
ambitions, but as always, such acquisitions will be considered
provided they meet the Group’s investment returns criteria and the
Board has comfort in the Group’s gearing and funding capacity.
Acquisition of Java Plantations Sdn Bhd
(now known as FCB Eastern Plantations Sdn Bhd)
Details of the acquisition
FCB Plantation Holdings Sdn Bhd (“FCBPH”) entered into an
agreement with Java Berhad on 6 October 2017 to acquire
Java Plantations Sdn. Bhd. (“JPSB”). JPSB is an investment
holding company having an 80% stake in Ladang Bunga
Tanjong Sdn. Bhd., a joint venture company with Kumpulan
Pertanian Kelantan Berhad, which operates an oil palm
plantation held under the Individual Title Geran 36415,
Lot 2429, Mukim Lubok Bongor, Jajahan Jeli, Kelantan
measuring approximately 3,290 acres or 1,331 hectares. The
lease period for the land is for 66 years and expiring on 28
September 2069. Under the terms of the agreement, FCBPH
has also assumed Java Plantations’ trade and other payables
and liabilities totalling RM29.18 million. The fair value of
the net assets acquired was RM4.89 million (excluding the
shares of the non-controlling interest) resulting in a negative
goodwill on acquisition of RM275,000.
The acquisition was completed on 20 February 2018 and the
effective price paid for the acquisition is RM10,255 per acre.
Benefits of the acquisition
The acquisition would enable the Group to realise its
strategy to expand its plantation business in Malaysia and
capitalise on the bright prospects of the palm oil industry,
which would provide a broader earnings base for the Group.
Progress made so far
Rehabilitation works on 566 hectares are ongoing to-date.
Replanting works will commence this current financial year
and scheduled to be completed by next financial year.