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The division’s trade receivables increased by RM17.56 million or 25.2% y-o-y to
RM87.28 million. Despite this increase, we are of view that there is no material
credit risk exposure and that the receivables are collectable given that the
division’s receivables are primarily with government authorities/agencies and
customers with whom the division has had a long-term relationship.
We have continued to maintain discipline in capital expenditure (“CAPEX”)
spending. The division spent RM0.46 million on CAPEX compared to RM2.38
million last year, which are primarily restricted to assets needed to meet or
maintain the division’s operational requirements.
outlook
As noted earlier, increased competition in the security documents industry has
placed pressure on the division’s margins. The emphasis this year would therefore
be to maintain our core markets and adapt to the ongoing secular challenges.
Pleasingly, there have been some new business wins and contract renewals in the
certificates and passes subsegments in this current financial year which we hope
will help us maintain or grow earnings.
We have continued
to maintain discipline
in capital expenditure
(“CAPEX”) spending.
The division spent
RM0.46 million on CAPEX
compared to RM2.38
million last year, which
are primarily restricted
to assets needed to
meet or maintain the
division’s operational
requirements.
Revenue Contribution by Product (%)
Travel
Documents
12.4%
Others
0.9%
Confidentials
Documents
5.1%
Certificates
& Passes
3.9%
Stamps, Postal
& Banking
Documents
0.9%
Foreign Travel
Documents
6.4%
Transport
Documents
70.4%
5-Year Revenue &
PBT Performance
(RM Million)
20’
25.99
134.00
19’
30.56
134.78
22.81
18’
140.78
17’
59.61
233.35
16’
54.01
266.68
-0.6%
-15.0%
Revenue PBT
Manufacturing Division : Year of Challenge
FYE
Annual Report 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
34