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Performance Review
The Division produces a
wide range of products
and services which
include travel documents,
licenses, and other
security and confidential
documents for the local
and overseas markets.
In FYE2018, the Division registered
revenue and PBT of RM140.78 million
and RM25.48 million respectively,
representing a decrease of 39.7% and
57.3% respectively from the previous
year. The decline in revenue and PBT
were due in large part to the expiry
of a major supply contract for travel
documents in Q1 of FYE2018 which
led to significantly lower top and
bottom-line contributions from this
sub-segment. Revenue from the travel
documents sub-segment declined
markedly from RM119.79 million last
year to RM21.31 million.
Adjusting to
the new normal
The share of results of associate
company Giesecke & Devrient Malaysia
Sdn Bhd also decreased to RM1.70
million from RM2.69 million last year.
The Division’s retained earnings stood at
RM250.47 million in FYE2018 (FYE2017:
RM273.38 million), providing us with
the financial flexibility to seize any new
market opportunities as and when they
arise. Trade receivables increased 39.3%
y-o-y to RM81.13 million. A significant
amount of the trade receivables arose
from customers with whom the Division
has had a long-term relationship and
therefore the Board is of view that there is
no significant concentration of credit risk
and that the receivables are collectable.
We expect the declining volumes from
the travel documents sub-segment
to persist. Nevertheless, we see
potential in the transport, foreign and
confidential documents sub-segments
Manufacturing Division