LATEST UPDATES : 02 Dec 2019 | MONTHLY PRODUCTION FIGURES (MINING / PLANTATION / TIMBER)
Corporate Information
Chairman Message
 

On behalf of the Board of Inch Kenneth Kajang Rubber Public Limited Company, I present herewith the One Hundred and Ninth Annual Report and Financial Statements of the Company and the Group for the financial year ended 31 December 2018.

 

DIVIDENDS

The Board had proposed an interim dividend payout of 2% (0.2 pence or 1.109 sen) for the financial year ended 31 December 2017 as part of our commitment to deliver shareholders value, with the total dividends under the single tier system.

PERFORMANCE REVIEW

During the financial year under review, the Group recorded a revenue of RM15.737 million and a loss after tax of RM11.123 million compared to a revenue of RM15.839 million and a post-tax loss of RM14.748 million for the previous year. The decrease in Group’s turnover by RM0.1 million is mainly due to the lower prices of the rubber blocks during the financial year under review.

The plantation division recorded a lower revenue at RM0.171 million (2017: RM0.181 million) due to the decline in prices of crude palm oil by about 20% to RM2,235 (2017: RM2,783). Revenue from the Group’s tourism division increased by 6.7% to RM11.318 million from RM10.611 million in 2017 due to higher bookings received.

Included in the above results for the financial year under review was a share of loss after taxation of RM1.822 million versus share of loss after taxation of RM0.730 million in 2017 from the Group’s associate – Concrete Engineering Products Berhad (“CEPCO”), a manufacturer and distributor of prestressed spun concrete piles and poles. The decreased sales volume is attributable to the slower offtake in the overseas projects. As such, there was an impairment of RM2.943 million to reflect the current market price of CEPCO.

Overall, the total performance of the Group was mainly affected by the impairment in CEPCO.

CORPORATE DEVELOPMENT

The shareholders of the Company had approved an ordinary resolution at the One Hundred and Eighth Annual General Meeting (“108th AGM”) held on 7 June 2018 for the Company to purchase its own shares up to a maximum of 10% of the issued and paid-up capital of the Company. The Directors of the Company are committed to enhancing the value of the Company and believe that the purchase plan is being implemented in the best interest of the Company and its shareholders.

As at 31 December 2018, the Company has 33,720,700 ordinary shares held as treasury shares and the issued and paid-up share capital of the Company remained at 420,750,000 ordinary shares of £0.10 each.

FUTURE OUTLOOK

The Master Plan to develop the land bank in Kajang, totalling approximately 140 hectares will soon be submitted to Majlis Perbandaran Kajang (“MPKJ”) after receiving the conditional approvals and comments from Jabatan Alam Sekitar (“JAS”), Lembaga Lebuhraya Malaysia (“LLM”) and Jabatan Kerja Raya (“JKR”).

We have revised our Master Plan based on consultations with MPKJ. From various feedback received, this new township will create a positive impact within the South Greater Klang Valley region.

As per our expectation, revenue for the tourism division increased in 2018. We anticipate further growth in 2019 as we foresee more tourists coming to the resort. The manufacturing division, however, is expected to remain at the same level due to the low market prices of the rubber blocks.

APPRECIATION

On behalf of the Board, I wish to express my appreciation to all our customers, shareholders, business partners, bankers and government authorities for their continued support and encouragement during the year.

Special thanks also go to the management and staff. Your invaluable efforts and firm dedication to the Group are truly appreciated. We are confident that success is in the pipeline.

I would also like to take this opportunity to offer my personal gratitude to my fellow Board members for their commitment and guidance.

Finally, a word of appreciation to our former Director, Datuk Kamaruddin bin Awang, who resigned on 11 January 2019. For the past 10 years he was with us, he had shared his vast knowledge in the property, financial and corporate matters, sectors of which he was involved for more than 40 years. We hope he remains in good health and wish him all the best in his future undertakings.

DATO' ADNAN BIN MAARUF
Chairman

30 April 2019

 
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