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 2014 (‘FY2014’). For FY 2014, the Group recorded a revenue of RM289.7 million compared to RM329.9 million recorded in the previous year. The lower revenue reflects the continued effect of the late start-up of new construction projects. After allowing for the share of losses of an associated company, Aseana Properties Limited (‘Aseana’) of RM15.4 million, the loss for the year amounting to RM27.3 million compared to a loss of RM40.2 million recorded in the previous year. The Directors do not recommend the declaration of dividends for FY2014.

On the construction front, the Group expects turnover to increase, based on current works in hand which include the construction of the Imperia Puteri Harbour, the KL Eco City and The RuMa Hotel and Residences. New tenders in the current financial year under review increased significantly from previous year. The current order book, together with the commencement of internally generated projects, will benefit the Group going forward. The Group’s order book stands at about RM1.1 billion of which about RM875.7 million remains outstanding as at June 2014.

On the property development front, the Group launched Kasia Greens, which consists of 142 units of terraced houses located in Nilai. We are happy to report that all the units are sold. Construction of the project is undertaken by Ireka Engineering & Construction Sdn Bhd and is on schedule for completion at the end of 2014.

Our Development Management Division has performed satisfactorily in completing projects under the Aseana Group which include the Harbour Mall Sandakan, the Four Points by Sheraton Sandakan hotel, the Aloft Kuala Lumpur Sentral hotel and the City International Hospital in Ho Chi Minh City, Vietnam. The construction of The RuMa Hotel and Residences in Kuala Lumpur City Centre is progressing well.

Our Technologies Division had a mixed year which was tempered with a drop in revenue from hardware sales in the home market but experienced slight improvements in sales revenues from SAFEHOUSE, i-Tech Network Solutions Sdn Bhd’s ‘green’ data centre. SAFEHOUSE also proudly obtained its ISO/IEC 27001:2005 Certification for Information Security Management System for the Provision of Data Centre Services from The Certification Body of TÜV SÜV Management Services GmbH in March 2014. i-Tech Network Solutions (Vietnam) Company Limited also managed to secure a couple of small networking and systems integration projects in Ho Chi Minh City, Vietnam.

iTech ELV Solutions Sdn Bhd’s (‘iTech ELV’) sales revenues dropped due in part to delays in the implementation of a couple of projects and a drop in project pipeline. iTech ELV was however still profitable in the financial year under review as we look to aggressively replenish work over the next 12 months.

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 Aseana for their continued support.

Finally on behalf of the Board, I take this opportunity to thank the management and staff throughout the Group for their hard work and support during this challenging period.

Haji Ir. Abdullah Bin Yusof
28 August 2014