INVESTOR RELATIONS
Chairman's Statement

 


 

ON BEHALF OF THE BOARD OF DIRECTORS, I AM PLEASED TO PRESENT THE ANNUAL REPORT AND FINANCIAL STATEMENTS OF IREKA CORPORATION BERHAD (THE ‘GROUP’) FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013.

For the financial year under review, the Group recorded revenue of RM329.93 million compared to RM429.89 million recorded in the previous year. The lower turnover is mainly due to early completion of remaining projects undertaken during the year under review and aggravated by late start up of projects secured during the year. After allowing for the diminution in value in shares of an associate company, the loss for the year amounts to RM40.21 million compared to a profit of RM10.40 million recorded in the previous year. The Directors do not recommend the declaration of dividends for the financial year ended 31 March 2013.

The construction sector continues to record positive growth, however, it remains very competitive and this is further affected by increases in the cost of building materials and manpower costs. On the construction front, the Group has RM734.04 million in its order book as at June 2013, which includes the MRT Civil and Location Structure Works, Kasia Greens in Nilai, Imperia Puteri Harbour serviced apartments and an office in Iskandar Malaysia and Solstice @ Pan’gaea in Cyberjaya. Additional contributions are expected from several internal projects which will start towards the end of the year.

i-Tech Network Solutions Sdn Bhd (‘i-Tech’) improved its revenue in the financial year 2013 to RM11.10 million compared to RM4.49 million recorded in the previous year, mainly due to the completion of several networking and system integration projects.

i-Tech’s ‘green’ data centre SAFEHOUSE in Mont’ Kiara was officially launched during the year and is now open for business and several clients have been secured during the first few months of operations. iTech ELV Solutions Sdn Bhd performed well in generating revenue of RM6.09 million compared to RM3.92 million in 2012, and with the registration of a Class A License, it will provide new business opportunities for the Company.

In Vietnam, i-Tech Network Solutions (Vietnam) Company Ltd secured an outsourcing contract with the City International Hospital in Ho Chi Minh City. Overall, i-Tech has shown positive improvements in its business activities.

SELECTIVE CAPITAL REDUCTION (‘SCR’)
On 14 June 2013, the Company received the SCR offer from Olymvest Sdn Bhd on behalf of non-entitled shareholders, being the major shareholder of Ireka Corporation Berhad. On 27 June 2013, the Independent Directors deliberated on the SCR proposal and had decided to appoint AFFIN Investment Bank Berhad as independent adviser to the minority shareholders and Independent Directors. In addition, the Board has also appointed RHB Investment Bank Berhad to submit the proposed SCR to the Securities Commission for approval.

The proposal covering the above will be tabled to shareholders for approval at the Extraordinary General Meeting to be held during the later part of the year.

The Group will continue to bid for construction projects amidst a very competitive environment. In addition, the Group will also pursue its own property development projects in Nilai and Kajang; as well as the hotel and residences project in Jalan Kia Peng, Kuala Lumpur.

In closing and on behalf of the Board of Directors of Ireka Corporation Berhad, I wish to convey my sincere thanks to all shareholders, customers, business partners and our partner, Aseana Properties Limited, for their continuing support.

To my colleagues on the Board, I would like to express my gratitude for their contributions and guidance during this challenging year. I also like to take this opportunity to express the Board’s appreciation to the management and staff at all levels for their supportive contributions during the year.

Haji Ir. Abdullah Bin Yusof
Chairman
29 August 2013