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Kumpulan Fima Berhad
(11817-V)
36
MANUFACTURING
DIVISION
Despite the challenging operating
conditions, the Division remains the
biggest contributor to the Group in
FYE2017, delivering a revenue and PBT
of RM233.35 million and RM59.61 million
respectively, a decrease of 12.5% in
revenue and an improvement of 10.4% in
PBT from the previous year. The decline
in revenue was due to lower sales
volume from travel documents resulted
from the expiry of a supply contract in
Q3 of FYE2017 (which was subsequently
extended until Q1 of this current financial
year), mitigated by improved sales
volume of transport and confidential
documents. Meanwhile, PBT improved
due to lower depreciation cost and
favourable sales mix.
The Division’s cash flow from operations
remains strong at RM100.97 million in
FYE2017, an increase of RM48.17 million
from the previous year thereby providing
us with the financial flexibility to seize
any new market opportunities as and
when they arise.
Contributing
42.6%
of total
group Revenue
Contributing
70.4%
of total
group PBT
Trade receivables decreased by 64.1%
to RM49.60 million. A significant amount
of the trade receivables arise from
customers with whom the Division
has had a long-term relationship, and
therefore the Board is of the view that
the risk of non-payment is low and
the receivables are collectible. During
the financial year, the Division spent
RM1.81 million on capital expenditure
(“CAPEX”) compared to RM7.18 million in
FYE2016, a decrease of 74.8%. CAPEX
during FYE2017 is largely restricted to
assets needed to meet or maintain the
Division’s operational requirements.