FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
15
CASH FLOWS
in RM’000
NET DEBT
WORKING CAPITAL
2013
(828)
é
3,078%
2013
71,932
é
32%
2014
(26,317)
2014
94,656
FREE CASH FLOW
CAPITAL EXPENDITURE
2013
31,455
é
4%
2013
6,280
é
45%
2014
32,742
2014
9,082
The net profit has increased in year 2014 mainly due to the significant increase in the revenue. The net cash from
operating activities was RM40.7 million and RM36.7 million in year 2014 and 2013 respectively. The higher amount
of operating cash flow was mainly due to improvement in earnings.
Net cash used for investment activities in 2014 was RM21.2 million, compared to RM8.0 million in year 2013. The
deterioration in cash flow for investment activities in year 2014 was due mainly to capital expenditure, investment
in a subsidiary and placement of fixed deposits.
Our Group has cash and cash equivalent at the end of 2014 of RM52.6 million, compared to RM36.4 million at the
end of 2013. Our Group will continue to exercise prudence in cash flow management while conserving the cash
for future expansion and investing activities.
FINANCIAL POSITION
Our Group’s shareholders’ fund improved from RM186.3 million as at 31 December 2013 to RM206.8 million as at
31 December 2014 mainly from the increase in retained earnings.
Total assets of our Group increased from RM302.2 million as at 31 December 2013 to RM356.4 million as at 31
December 2014. Total group liabilities of RM116.7 million as at 31 December 2014 were higher by RM28.7 million
or 32.7% than previous year mainly due to increase in trade and other payables. Group borrowings were increased
from RM36.3 million in year 2013 to RM37.5 million in year 2014.
32% of the total Group borrowings at the end of 2014 is repayable within one year with the balance spread over
2 to 7 years. Singapore Dollar borrowings represented 43% of total borrowings whilst borrowings denominated
in Taiwan Dollars and Ringgit Malaysia made up 21% and 36% of total borrowings respectively. Foreign currency
borrowings were drawn to hedge against our Group’s overseas investments and receivables which were denominated
in foreign currencies.
FINANCIAL
REVIEW
(cont’d)
