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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
33
FYE2020 Focus Areas
Strengthen
nationwide
support services
Local and
international
strategic
partnerships
Shift towards
end-to-end
solutions
Customer
retention
Develop talent and
subject matter experts
in technology-based
security solutions
Specific business challenges
• Megatrends / digital disruptions
• Margins under pressure – high costs of doing business
• Economic cycles & impact on governments’
infrastructure spend
Customer needs
• Solutions, not just products
• Reduced cost & increased productivity
• Supply security & resilience
• A trusted and reliable service provider
Revenue for the financial year ended 31 March 2020 (“FYE2020”)
was RM134.00 million which represents a year-on-year (“y-o-y”)
decrease of 0.6% from RM134.78 million achieved in the previous
year. Revenue performance was undermined by a combination of
secular declines in volumes as well as changes in order patterns
for certain product segments. The travel and transport documents
segments, which have cumulatively generated RM110.99 million
representing a combined y-o-y revenue growth of 3.4% remains
the leading contributor to the division’s revenue at 70.4%. The
stamps, postal & banking documents subsegments have also
delivered notable improvements with revenue growing 11.4% from
last year thereby offsetting the decline in other product segments.
Profit before tax declined 15.0% y-o-y to RM25.99 million
mainly attributable to the less favourable sales mix. Heightened
competition within the security printing industry and general
economic conditions have served to further increase pressure on
the division’s profit margins.
The share of results of our associate company Giesecke & Devrient
Malaysia Sdn Bhd was down from RM3.73 million last year to
RM1.96 million.
The division’s trade receivables increased by RM17.56 million or
25.2% y-o-y to RM87.28 million. Despite this increase, we are of
view that there is no material credit risk exposure and that the
receivables are collectable given that the division’s receivables are
primarily with government authorities/agencies and customers
with whom the division has had a long-term relationship.
Revenue By Product
Certificates & Passes
Stamps, Postal & Banking Documents
Others
Transport Documents
Travel Documents
Foreign Travel Documents
Confidential Documents
12.4%
0.9%
6.4%
0.9%
3.9%
5.1%
70.4%
Revenue
5-Year Revenue & PBT Performance
(RM Million)
pbt
FYE2016
268.30
54.01
FYE2017
233.35
59.61
FYE2018
140.78
22.81
FYE2019
134.78
30.56
FYE2020
134.00
-0.6%
25.99
-15.0%
We have continued to maintain discipline in capital expenditure
(“CAPEX”) spending. The Division spent RM0.46 million on
CAPEX compared to RM2.38 million last year, which are primarily
restricted to assets needed to meet or maintain the Division’s
operational requirements.
Manufacturing Division : Year of challenge