SHAH ALAM, Malaysia, June 7 — Kumpulan Perangsang Selangor Berhad (KPS) conducted its 45th Annual General Meeting (AGM) via live streaming and online remote voting using remote participation and electronic voting facilities as part of its continuing safety and precautionary measures.
At the AGM, the shareholders approved all resolutions on the agenda, which include a final single-tier dividend of RM13.4 million or 2.5 sen per share for the financial year ended (FYE) 2021. The final annual dividend will be payable on July 6, 2022, entitled to shareholders of record at the close of business on June 10, 2022.
In his presentation on the business review, Managing Director and Group Chief Executive Officer Ahmad Fariz Hassan said that 2021 was a year with agility, resilience, and determination where KPS continued to gain stronger ground amidst the lingering impact of Covid-19 that had sustained challenging business conditions across the manufacturing sector.
KPS strengthened the Group’s fundamentals by closing the year commendably, a testament to the strategic execution of the value creation plans and the tenacious commitment of its people.
As compared to FYE 2020, the Group revenue improved 23.4 per cent year-on-year to RM1,328.1 million from RM1,076.5 million due to the outperformance in the manufacturing sector. The manufacturing business contributed 86.8 per cent, growing by 28.8 per cent to RM1,152.2 million from RM894.6 million in the corresponding period last year.
This was followed by trading and licensing businesses, each contributing 9.2 per cent and 2.7 per cent or RM121.9 million and RM35.5 million, respectively. Whereas, the infrastructure business and the property investment contributed 0.7 per cent and 0.6 per cent each during this period, with RM9.6 million and RM8.9 million, respectively.
For the year under review, the operating profit more than doubled to RM104.8 million from RM51.0 million, supported by other income contributed by the gain on disposal of properties amounting to RM14.8 million, higher forex gain and lower impairment loss on assets.
The bottom line was offset by an 80.1 per cent lower share of profits from associates due to a gain on the securitisation of remaining proceeds from SPLASH amounting to RM18.6 million in FYE 2020 but was cushioned by a 20.6 per cent improvement in finance costs. As a result, profit before tax and zakat increased by 53.4 per cent to RM87.9 million from RM57.3 million.
Profit attributable to owners of the parent (PATAMI) leapt 67.7 per cent to RM57.2 million from RM34.1 million posted last year.
“The Group braced through the challenges brought upon by the supply chain headwinds that resulted in escalated raw material prices and sustained electronics chips, foams and labour shortages.
“I am proud that our business strategies and execution were proven to be effective, leading to the subsidiary companies’ growing their fundamental resilience in weathering the operational headwinds, as demonstrated by the Group’s commendable year-on-year revenue and earnings performance,” said Ahmad Fariz.
He added the Group’s success had a lot to do with the agility, commitment, grit, and resilience of its people, and that KPS has proven that amidst a confluence of challenges, it managed to manoeuvre, pivot, adapt and focus on the end game to ensure the shared corporate objectives and long-term goals were not only met, but surpassed.
“KPS stays committed to rewarding its shareholders for their support and trust by returning capital to the shareholders in the form of dividends. On November 25, 2021, the Board declared an interim dividend of 2.0 sen per ordinary share and RM10.7 million was paid out to the shareholders on December 31, 2021.
“Along with the final dividend of 2.5 sen approved today, our shareholders will be receiving a total of 4.5 sen dividend per ordinary share with a total payout of RM24.2 million. This is equivalent to 54.2 per cent of FYE 2021 normalised core PATAMI, 24.2 per cent higher than the minimum 30.0 per cent of normalised core PATAMI, as per the Group’s dividend policy,” Ahmad Fariz said.
Group Prospect
He explained that with supply chain — and possibly, labour — challenges lingering into the second half of 2022, KPS expects to progress moderately in the current financial year and shall remain prudent and exercise caution while executing the business strategy and safeguarding the viability of the Group business amidst a volatile and uncertain operating environment.
“Nonetheless, we shall continue to capitalise on emerging opportunities whilst ensuring competitive repositioning of our products, ensuring strategic execution of the value creation plans at the subsidiary companies to safeguard our operational and financial performance,” Ahmad Fariz said.
— Bernama
