Quarterly Results

Quarterly Report For The Financial Period Ended 30 September 2018

Financials Archive
Financial Statement (330 KB)

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Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Financial period Ended 30 September 2018



Condensed Consolidated Statement Of Financial Position As at 30 September 2018



Condensed Consolidated Statement Of Cash Flow For the financial period ended 30 September 2018

Review of Performance
CURRENT QUARTER (FY2019-Q2 vs FY2018-Q2)

The Group's revenue increased by 24% to RM30.99 million due to higher contribution from both hire purchase and furniture segment. The Group's profit before tax increased by 43% to RM11.59 million mainly due to increase in hire purchase portfolio and significantly lower impairment allowance for the quarter ended 30 September 2018.

Hire purchase receivables recorded a 22% growth year on year from RM355.55 million to RM435.26 million as at 30 September 2018. This was the key factor that led to the increase in hire puchase revenue for the current financial period.

Total borrowings increased by 81% mainly due to higher drawdown of block discounting facility during the current financial period to support the increased hire purchase receivables.

Revenue increased by 17% to RM20.73 million, mainly due to increase in hire purchase portfolio.

Other income increased by 63% to RM0.69 million mainly due to additional income received from short term funds.

Impairment allowance decreased by 30% to RM3.56 million. Credit loss charge (i.e. impairment allowance over average net hire purchase receivables) decreased from 1.37% to 0.81%. The improvement was mainly due to stable domestic economic environment during the financial period under review and the Group's concerted efforts in credit recovery.

Other expenses increased by 29% to RM5.53 million mainly due to higher staff costs attributed to the recruitment of a larger workforce. As a result of higher borrowings, the finance cost increased by 60% to RM0.89 million.

The profit before tax increased by 40% to RM11.30 million mainly due to increase in hire purchase portfolio and lower impairment allowance for the quarter ended 30 September 2018.

Revenue increased by 41% to RM10.26 million mainly due to the increase of local sales, which is in line with the Group's effort to focus its operations in the domestic market.

Other expenses increased by 20% to RM3.12 million mainly due to higher operating expenses which is in tandem with the higher sales.

The segment recorded a profit before tax of RM0.28 million mainly due to higher revenue for the quarter ended 30 September 2018 .

YEAR-TO-DATE (FY2019 YTD vs FY2018 YTD)

The Group's revenue increased by 18% to RM59.82million, due to higher contribution from both hire purchase and furniture segment.

The Group's profit before tax increased by 49% to RM22.31 million, mainly contributed by the hire purchase segment.

Hire Purchase Segment

Revenue increased by 15% from RM35.31 million to RM40.70 million, mainly due to increase in hire purchase portfolio.

Impairment allowance decreased by 36% to RM7.39 million. Credit loss charge (i.e. impairment allowance over average net hire purchase receivables) decreased from 3.31% to 1.80%. The improvement was mainly due to stable domestic economic environment during the financial period under review and the Group's concerted efforts in creadit recovery.

Other expenses increased by 32% to RM10.79 million mainly due to higher staff costs attributed to the recruitment of a larger workforce and higher staff development expenses.

As a result of higher borrowings, the finance cost increased by 48% to RM1.62 million.

The profit before tax increased by 47% to RM21.87 million mainly due to increase in hire purchase portfolio and lower impairment allowance for the six (6) months period ended 30 September 2018.

Furniture Segment

Revenue increased by 26% to RM19.12 million mainly due to the increase of local sales, which is in line with the Group's effort to focus its operations in the domestic market.

Impairment allowance increased by RM0.16 million to RM0.31 million, mainly due to slower payment from furniture dealers. Other expenses increased by 17% to RM6.11 million mainly due to higher operating expenses which is in tandem with the higher sales.

The segment recorded a profit before tax of RM0.44 million for the six (6) months period ended 30 September 2018.

Prospects and Outlook

Despite the uncertain economic conditions ahead, the overall macro-economic factors (i.e. labour market conditions, inflation outlook, cost of living) and general public sentiments remain positive. In view of this, the Group intends to maintain its momentum in growing its hire purchase portfolio in the financial year ending 31 March 2019 without compromising on the quality of its assets.

The Group will focus on its core business of second hand car hire purchase financing, which strategically operates in the underserved niche market, and continue to remain prudent in managing its credit risks.

The furniture business will continue to focus its operations in the domestic market.

In conclusion, the Board is confident that the Group's performance for the financial year ending 31 March 2019 is expected to be better than financial year ended 31 March 2018.

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