On behalf of the Board of Directors, I am pleased to present to you the Annual Report and Audited Financial Statements of the Group and of the Company for the financial year ended 31 May 2017.
The Group posted a higher revenue of RM1.70 billion for the current financial year ended 31 May 2017 ("FY2017") compared to a revenue of RM1.51 billion in the previous financial year ended 31 May 2016 ("FY2016"). Profit before taxation ("PBT") grew by 199% to RM51.4 million in FY2017 from RM17.2 million in FY2016.
After accounting for taxation and non-controlling interests, the profit attributable to shareholders for FY2017 amounted to RM17.5 million compared to a loss attributable to shareholders of RM7.0 million in FY2016.
Overall, the Group has performed well in the current financial year. The earnings per share for the current financial year is 8.11 sen compared to a loss per share of 3.24 sen in FY2016.
Review of Operations
Our agricultural and industrial chemical business saw higher selling prices and volume for the industrial chemicals while the agricultural chemical business continued to make inroads into the larger plantation companies in Malaysia. Exports sales for the agriculture chemical business remained strong with orders from Latin America and Australia.
The improvement in performance from our manufacturing plant in Surabaya, Indonesia and higher demand for our sub-soil drainage products have contributed positively to the Polymer Division.
Despite a challenging year in FY2017 in the media industry, our Media Division performed creditably. This was achieved through better marketing efforts and strategies plus costs rationalisation exercise. In September 2016, our 51% subsidiary, Titanium Compass Sdn. Bhd., won the bid for the advertising concession in the First Phase of the MRT Lembah Kelang - Jajaran Sungai Buloh – Kajang ("KVMRT-SBK Line"). This marks a major milestone for our media business as it enables us to offer new media platforms to our customers.
Our Logistic Division received its new chemical vessel in mid-January 2017. It was not fully operational as at the financial year-end as it was undergoing certain procedural ship inspection by the relevant authorities during the year. The new chemical vessel will complement our industrial chemical business for the regional clients.
While the global economy has shown signs of growth, the pace of recovery remains slow and therefore, the general outlook has yet to show much improvements. Amid the uncertainty surrounding the stability of the global economy, the business environment will remain challenging. The Board and management will continue its efforts to improve efficiencies of its existing businesses and explore opportunities to expand the business.
The Board is of the view that, barring unforeseen circumstances, the financial performance and prospects of the Group will be satisfactory in the next financial year.
On behalf of the Board, I would like to thank the management and all employees for their contribution, commitment and dedication in achieving remarkable results for the current financial year. I would also like to thank all our valued shareholders, customers, suppliers, bankers, business associates and the regulatory authorities for their continued assistance and co-operation.
Dato' Johari Razak