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INVESTOR RELATIONS
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 2011.
At the forthcoming Annual General Meeting, a first and final single-tier dividend in respect of the financial year ended 31 March 2011 base on a single-tier dividend of 5% (5 sen net per ordinary share) on 113,914,700 ordinary share will be proposed for shareholders' approval. The dividend payout of RM5.69 million will be accounted for as an appropriation from retained earnings. Last year saw the completion of four major projects, which include 1 Mont' Kiara office towers and shopping mall, structural works for the basement and podium of the KL Sentral offices and hotel project and the SENI Mont' Kiara phase 1 condominium towers. In addition, several projects were secured during the year with a total contract value of RM370.08 million, which include structural works package at City International Hospital, Ho Chi Minh City, the Group's first project in Vietnam. Based on these contracts, the remaining value of work to be completed amount to about RM414.00 million. The Group's e-Commerce business under i-Tech Network Solutions Sdn Bhd ("i-Tech") continues to operate under a very competitive environment. i-Tech recorded improved gross profit compared to previous year. Going forward, i-Tech has embarked on the building of a "green" data center at Mont' Kiara offering co-location, data center and managed services. This data center is expected to commence full operations by the end of the current year. i-Tech is currently carrying out extensive promotions with our partner and hardware suppliers. The need for data center services is increasing as demand for space in systems integration and network solutions is getting competitive. In addition, our subsidiary company iTech ELV Solutions Sdn Bhd which is actively involved in installing cabling and data network infrastructure has a healthy order book and is confident of securing further projects. Going forward, the Group will continue to bid for construction work both in the public and private sectors and at the same time continue with its core business in property development. The Group has sufficient construction work in hand until end of next year and is actively tendering to replenish its order book. In addition, the Group is planning for the Jalan Kia Peng development project which is expected to commence early next year. The Group is also evaluating several possible acquisition of land for future development. In closing and on behalf of my fellow Directors, I wish to convey my sincere thanks to all shareholders, customers, business partners especially our associate, Aseana Properties Limited, for their continued support. To my colleagues on the Board, I wish to extend my gratitude for their contributions and guidance during the year. I also take this opportunity to thank the management and staff at all levels for their support and contributions during the year. Haji IR. Abdullah Bin Yusof |
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For the financial year under review, the Group recorded an increase in revenue of RM443.95 million compared to RM393.07 million recorded in the previous financial year. This is in line with the increased volume of work completed during the year. Operating profit was RM9.66 million compared with RM20.35 million achieved during the previous year due to provision of Liquidated Ascertained Damages for one of the projects undertaken. After accounting for the Group's share of losses in Aseana Properties Limited of RM7.69 million and a "mark-to-market" loss for the Group's share investment in Kinh Bac City Development Shareholding Corporation of RM2.69 million, the Group recorded a loss of RM11.74 million compared with a profit of RM8.67 million in the previous year. Tight labour market, increased labour costs and material prices have also affected construction margins. |