FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
08
On behalf of the Board
of Directors of Frontken
Corporation Berhad, I present
to you the Annual Report
and the Audited Financial
Statements for the financial
year ended 31 December
2014.
CHAIRMAN’S
STATEMENT
Year 2014 in perspective
In my last statement, I stated that our Group would
remain cautious on the economic outlook for year 2014
as the domestic and overseas markets continue to be
challenging but encouraging. With each passing quarters,
I am pleased to report that through perseverance and
hard work, year 2014 has seen a significant improvement
of our performance as compared to year 2013.
Generally, year 2014 was a good year for us. In it, there
were mixed performances for our Group’s businesses
with some businesses soaring while others were slightly
down. We will continue with our strategy to build a stable
platform. We have responded to the lessons we learned
from the market when our customers rescaled their
businesses and are now in a better position in aligning
our businesses in the respective markets.
Our revenue improved significantly to RM309.8 million
(2013: RM190.6 million) which was largely contributed
by the improved business performance of our Group’s
subsidiaries in Taiwan and Malaysia. The semi-conductor
business in Taiwan was robust and we were fortunate
to be able to capitalise on the same. For Malaysia, the
ATB Project in Tanjung Bin and contributions from the
oil and gas and semi-conductor divisions assisted in
the better performance as well. Consequently, our Profit
Before Tax also improved to RM28.1 million (2013 :
RM5.9 million) as a result of the higher revenue and good
control of operating costs. The profit from the sale of a
loss making associate company also contributed to the
better bottom line.
The Malaysian market improved to RM147.9 million (2013
: RM33.7 million). The operating Malaysian entities are
Frontken Malaysia Sdn Bhd, Frontken (Johor) Sdn Bhd,
Frontken (East Malaysia) Sdn Bhd and TTES Frontken
Integrated Services Sdn Bhd (formerly known as TTES
Team & Specialist Sdn Bhd) (“TTES”).
The shareholders’ funds increased by RM20.5 million
from RM186.3 million in year 2013 to RM206.8 million in
year 2014 mainly due to the improvement in the reserves.
The Group’s net asset per share increased from 21 sen
(2013) to 24 sen (2014).
On the regional front, Taiwan continued to improve its
revenue from RM65.7 million (2013) to RM92.3 million
(2014), an improvement of 40%mainly due to the positive
growth of the semi-conductor business. However,
we encountered a continued drop in business in our
operations in Singapore. The revenue from Singapore
reduced to RM67.0 million from RM79.7 million partly
due to lesser orders received from customers who
have either delayed in the outages of their plants or
reduced their maintenance activities. Our Philippines’
operations also saw a dip in its revenue from RM13.9
million to RM11.5 million due to stiff competition in the
maintenance contracts but its bottom line was better
than that achieved in 2013 due to continual prudent cost
management. It was comforting to note that Indonesia’s
performance has continued to improve to RM2.1
million (2013 : RM1.7 million).The Indonesian company
has obtained the necessary licence from SKK Migas,
Indonesia which will enable it to participate in repair and
services works for the oil and gas industry.
