FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
09
CHAIRMAN’S
STATEMENT
(cont’d)
During the year, our Group generated RM40.7 million
cash flows from our operations and out of which we
utilised RM8.5 million to acquire property, plant and
equipment and RM7.4 million for investment in a
subsidiary. The cash and cash equivalent amassed for
the year was RM52.6 million.
Our Group’s revenue for the 12 months ended 31
December 2014 increased by approximately RM119.2
million (62.6%) mainly due to the improved contribution
from our operations in Malaysia and Taiwan.
Analysing our business
The significant improvement in our revenues from our
operations in Malaysia and Taiwan had on an overall
basis elevated our total revenue to increase about 62.6%
as compared with year 2013. The semi-conductor market
in Taiwan has been edging upwards from quarter to
quarter and this has led to the increase in the demand
of our services. On the home front, the growth was
attributed to the progressive revenue from the project
in Tanjung Bin as well as the higher revenue from both
our oil and gas and semi-conductor division.
The markets in Singapore and Philippines continued to
challenge us. We will continue to focus our strengths
to overcome the challenges by enhancing our services,
increasing our efficiencies and reducing costs. Just like
the previous years, our business had been affected by the
slowdown and deferment of projects by our customers
due to scale back of new or proposed expansion. We
will consolidate our business and prioritise our efforts to
focus on revenue and bottom-line.
We entered year 2015 with the same priority to continue
to focus our attention on the quality of our services
and efficiencies so as to maintain our competitiveness.
As always, we strive to deliver long-term value to our
stakeholders. Over the years, we had taken serious
steps to continue to look for business opportunities
that bode well and synergise with our current activities.
Our acquisition of TTES has enabled us to tap onto
our presence and infrastructure in the region with the
view of growing its existing business. This synergistic
relationship is expected to contribute positively to
our earnings. TTES has a license with Petronas for
it to supply and provide services to Petronas. It is
principally engaged in the business of turbo machinery
technical engineering services and rotating equipment
engineering, maintenance and technical support services
for various types of industrial gas turbines and the driven
equipment such as general maintenance on gas turbines,
pumps, compressors, high speed industrial gearboxes
and turbo generators, field performance analysis of
gas turbines and compressors, vibration diagnostics/
analysis, surveillance, system integration and installation
and gas compressor overhauls.
Keeping cost lowand getting liquidity
flowing
Our past practices of keeping cost low will continue
to be our main priority as we maintain our practice to
keep tabs on our financials by conserving our resources
and focusing on growth in the challenging business
environment. Our management team possesses great
professionalism and commitment to achieving this
goal. With each passing year, we will innovate and fine
tune our business strategies and model so that we may
remain competitive.
We will abide by our strategy of operational efficiencies,
organic growth and incremental in customers base to
expand our business and keep the liquidity in.
Outlook for 2015
Let me now share with you the outlook for 2015. Our
Group’s improved performance of the domestic and
regional markets is anticipated to spill over from year
2014 to year 2015. The improvement in business and
operating performance augur well with us and this
represents an encouraging sign that our Group is on the
right track of recovery from the slowdown and deferment
of projects by our customers back in year 2013.
