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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
which cumulatively have generated
approximately RM112.84 million in
revenue, coming in at combined y-o-y
growth of 6.6%. We anticipate that
volumes from these sub-segments will
drive revenue growth and become a
larger component of our overall business
in the near term. Since products from
these sub-segments generally have
lower margins than travel documents,
we also estimate that despite the said
revenue growth, there will be some
contraction to our overall gross profit
margins.
During the year under review, the
Division spent RM1.28 million on capital
expenditure (“CAPEX”) compared to
RM1.81 million last year, representing
a decrease of 29.3%. CAPEX utilized
during FYE2018 is largely restricted to
assets needed to meet or maintain the
Division’s operational requirements. We
had equipped our IT support staff with
mobile devices to enhance the way they
access, store and report information.
Notable gains include reductions in
both operational staff time and total
management costs, as well as improved
customer engagement.
We are acutely aware of competitors
targeting our niche markets. Further, we
also recognize how rapid changes in
technology are revolutionising customer
and business expectations thereby
forcing changes on traditional business
models. This is the “new normal” of our
business.
Revenue
(RM ’million)
233.35
FYE2017
140.78
▼
39.7%
FYE2018
Profit before tax
(RM ’million)
59.61
FYE2017
25.48
▼
57.3%
FYE2018
The Division’s strong performance over the
past many years means expectations are,
rightly, set at the highest level. The true test,
however, lies in our ability to deliver through
economic cycles, adapt to changing
customer expectations and industry
megatrends. In order to address these
new norms, we will continue to evolve our
business and adjust our portfolio to take
advantage of newmarket opportunities.We
have maintained investment in products
and services to support our customers and
broaden our offerings. We have focused
and will continue to focus our efforts on
activities and opportunities that can help
create sustainable value in a business
environment that is vastly different than
the last decade. During the year we had
reduced the size of our total workforce
by 10.8% - a decision that was not taken
lightly, to ensure the Division remains
competitive at lower levels of economic
activity. Cost structures must be aligned
with volumes and while rationalising a
business is always painful, resetting our
cost base will bring future benefits from
the eventual upturn in our end markets.
At the same time we are also putting
emphasis on strategic partnerships and
collaborations built around technology-
driven identity documents and security
solutions and services to build capabilities
which can open up additional markets
and enhance our competitiveness,
both local and overseas. These, along
with continued focus on efficiency
improvements create the path for
improved results going forward.
Revenue
CONTRIBUTION BY PRODUCT (%)
1%
1%
3%
5%
8%
15%
67%
Foreign Business
Travel Documents
Transport Documents
Confidential Documents
Stamps, Postal &
Banking Documents
Others
Certificates & Passes
Manufacturing Division