For the financial quarter under review, the Group's business activities from continuing operations were split into 4 segments:
The Group’s property development division comprises of the development of joint-venture property project in Taman Shamelin Perkasa and the redevelopment of a property in Central London
The Group’s energy services division, entails the trading and supply of specialty chemicals, provision of logistics and chartering services
The Group's engineering, construction and fabrication division provides engineering and fabrication works
The Group's investment holdings comprise of holding of investment in shares of subsidiaries, associate and joint venture as well as management services and provision of financial assistance for companies within the Group
For the quarter ended 30 June 2018, the Group recorded a higher profit before taxation from continuing operations of RM3.87 million as compared to Q1 FY17/18 of RM1.58 million mainly on higher contribution from energy services division.
Energy services division recorded a profit before taxation of RM8.47 million as compared to RM3.79 million in same quarter in previous year, owing to higher profit from seasonal catalyst demand by a customer.
Investment holdings division showed a higher loss by RM3.43 million due to some defraying cost of disposal of Holiday Plaza and Shamelin Business Centre.
With the expected growth rate of 5.5%-6.0% in 2018 for Malaysia, local businesses are expected to record better growth for the year. On the global front, global business activities may see higher growth for 2018 on the back of an expected growth rate of 3.1%.
The prospects of the Group's business segments are as follows:
The financial year 2018/2019 ("FY18/19") will be a challenging year with certain pressing issues such as the oversupply and affordability issues that will continue to affect the property market.
For the FY18/19, the Group is exploring few property development opportunities in Klang Valley. The focus is mainly on landed properties and housing projects in the price range of RM500K to RM600K per unit.
The segment will remain as the leading revenue and earnings contributor to the Group in FY18/19. Buoyed by improving global oil price at around USD70 per barrel and the resumption of capital expenditure programme by the energy players, this sector is expected to remain robust but nonetheless, intense competition and escalating input costs will continue to exert some pressure on the operating margins. With the determined effort to counter these factors through aggressive marketing strategies, improvement in supply chain management, prudent and responsible spending, the Group anticipates the current year performance for the segment to be better.
Engineering, construction and fabrication
This segment will continue to aggressively bid for contracts whenever the opportunity arises to enhance our order book and at the same time focus on the execution of existing projects. The Group will actively explore new sources of revenue growth to create more recurring and sustainable income in the future for this new segment.
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