On behalf of the Board of Inch Kenneth Kajang Rubber Public Limited Company, I present herewith the One Hundred and Tenth Annual Report and Financial Statements of the Company and the Group for the financial year ended 31 December 2019
The Board has proposed an interim dividend payout of 2% (0.2 pence or 1.06 sen per share on 378,675,000 ordinary shares) as part of our commitment to deliver shareholders value, with the total dividends under the single tier system.
During the financial year under review, the Group recorded a revenue of RM14.214 million and a loss after tax of RM6.910 million compared to a revenue of RM15.737 million and a post-tax loss of RM11.123 million for the previous year. The decrease in Group’s turnover by RM1.523 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 RM0.166 million (2018: RM0.171 million) due to the decline in yearly average price of crude palm oil (“CPO”) by about 5% to RM2,119 (2018: RM2,235). Revenue from the Group’s tourism division slightly decreased by 0.9% to RM11.220 million from RM11.318 million in 2018 due to lower average room rates achieved.
Included in the above results for the financial year under review was a share of loss after taxation of RM2.280 million versus a share of loss after taxation of RM1.822 million in 2018 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 general slowdown in the construction industry.
Overall, the total loss after taxation for the Group was lower in 2019, as we received additional compensation of RM3.8 million for an earlier acquisition by Lembaga Lebuhraya Malaysia.
As at 31 December 2019, the Company has 42,075,000 ordinary shares held as treasury shares and the issued and paid-up share capital of the Company remained at 420,750,000 0rdinary shares of £0.10.
The Master Plan to develop the land bank in Kajang, totalling approximately 140 hectares has been submitted to various agencies such as Lembaga Lebuhraya Malaysia, Jabatan Kerja Raya, Pejabat Tanah Daerah Hulu Langat and Tenaga Nasional Berhad for their final approval. We have also started the submission process to the One Stop Centre of Majlis Perbandaran Kajang.
Irrespective of any unfortunate circumstances, our Master Plan could get the final approval from Majlis Perbandaran Kajang towards the end of 2020. Once the approval is obtained, we will start the development of our commercial centre as this is expected to be the main catalyst for the overall development.
The tourism division performed well in 2019 in terms of revenue. However, due to the current Covid-19 outbreak, this division is not expected to do as well in 2020 as the overall travel industry is badly hit by the ongoing pandemic. The manufacturing division, however, is expected to remain at the same level. As such, we will take the necessary steps to reduce as many expenses as possible until the industry picks up again.
2020 will be a challenging year. We shall remain steadfast and committed to achieve our goals in the years to come.
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 go to the management and staff. Their invaluable efforts and firm dedication to the Group are truly appreciated. We are confident that success is in the pipeline.
I wish to offer my personal gratitude to my fellow Board members for their commitment and guidance.
I would also like to take this opportunity to welcome our newest Board member, Dato’ Mohamed Salleh bin Bajuri. His expertise, experience and vast knowledge in property, financial and corporate matters would be important assets for the Group’s future undertakings.
DATO’ ADNAN BIN MAARUF
29 May 2020