Greetings, fellow investors! Today, we’re diving deep into the latest financial performance of a company that’s been navigating a dynamic market landscape. The Group has just released its quarterly report for the period ended 31 March 2025, and it presents a fascinating picture of resilience and strategic shifts.
While the market continues to pose challenges, this report highlights several impressive data points: a commendable
This signals the Group’s concerted efforts to improve its operational efficiency and strategic positioning. Let’s unpack the numbers and understand what’s driving these trends.
Quarterly Performance Snapshot: Growth Amidst Challenges
For the quarter ended 31 March 2025, the Group demonstrated solid top-line growth. Revenue climbed significantly, indicating a positive momentum in their core business activities. However, the Group continues to report a loss before taxation, though with a clear improvement compared to the previous year’s corresponding quarter.
Q1 FY25 (31 Mar 2025)
Revenue: RM7,111,000
Loss Before Taxation: RM(2,212,000)
Basic Loss Per Share: RM(0.08)
Q1 FY24 (31 Mar 2024)
Revenue: RM6,299,000
Loss Before Taxation: RM(2,993,000)
Basic Loss Per Share: RM(0.19)
The
for the quarter was primarily driven by higher project recognition in certain business units. The narrowing of loss before taxation was largely due to reduced employee benefits expenses and a slightly improved share of results from associates. However, this positive trend was partially offset by increased interest expenses and lower other income, highlighting areas where the Group still faces headwinds.
Year-to-Date Performance: Sustained Revenue Growth and Cost Management
Looking at the cumulative performance for the financial period ended 31 March 2025, the Group maintained its growth trajectory. The year-to-date revenue also saw a healthy increase, mirroring the quarterly trend.
YTD FY25 (31 Mar 2025)
Revenue: RM37,434,000
Loss Before Taxation: RM(6,562,000)
Basic Loss Per Share: RM(0.36)
YTD FY24 (31 Mar 2024)
Revenue: RM33,045,000
Loss Before Taxation: RM(6,823,000)
Basic Loss Per Share: RM(0.53)
The
, mainly attributable to improved project delivery and the completion of several contracts. The marginal improvement in loss before taxation for the year-to-date period was a direct result of cost-saving initiatives, particularly in employee expenses. However, this was somewhat negated by higher other operating expenses, primarily due to unfavorable foreign exchange movements. Additionally, other income was significantly lower compared to the previous year, largely because of the absence of substantial foreign exchange gains that boosted prior year’s results.
Diving Deeper: Balance Sheet and Cash Flow Strength
Beyond the income statement, the Group’s balance sheet shows a significant strengthening, particularly in its cash position, which is a critical indicator of financial health and operational flexibility.
| Financial Metric | 31 Mar 2025 (RM’000) | 31 Mar 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Total Assets | 81,397 | 58,149 | +39.98% |
| Total Equity | 54,395 | 30,772 | +76.77% |
| Total Liabilities | 27,002 | 27,377 | -1.37% |
| Cash and Cash Equivalents | 27,612 | 4,365 | +532.58% |
| Net Assets Per Share (RM) | 0.0262 | 0.0261 | +0.38% |
The substantial increase in total assets and equity reflects a healthier financial standing. Most strikingly, the Group’s
. This remarkable increase in cash was largely fueled by financing activities, specifically proceeds from the conversion of Irredeemable Convertible Preference Shares (ICPS) and the exercise of Employee Share Option Scheme (ESOS). This strong liquidity position provides a significant buffer for future investments and operational needs.
While net cash generated from operating activities saw a slight decrease compared to the previous year (RM3.55 million vs RM5.65 million), the robust financing activities (net cash generated RM26.57 million) have significantly bolstered the Group’s overall cash position.
Segmental Insights: Overseas Operations Drive Revenue
The segmental information reveals that the Group’s overseas operations are the primary revenue driver, contributing significantly more than its Malaysian counterparts. For the cumulative period, overseas external revenue stood at RM34.485 million, compared to Malaysia’s RM2.949 million. Both segments, however, reported losses, indicating that profitability remains a challenge across the board.
It’s also worth noting the Group’s current quarter performance compared to the immediately preceding quarter (31 December 2024). Revenue saw a 33% decrease, leading to a loss of RM2.2 million from a profit of RM0.6 million in the prior quarter. This was attributed to lower project milestone completions, underscoring the project-based nature of their revenue recognition.
Navigating Challenges and Charting the Future
Despite the positive revenue growth, the Group acknowledges the persistent challenge of profitability. The report highlights that unfavorable foreign exchange movements contributed to higher operating expenses and lower other income, impacting the bottom line. This is a common risk for companies with significant international operations.
However, the Group is not standing still. Their strategic outlook is clear, focusing on long-term
