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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
FINANCIAL
REVIEW
(cont’d)
The consolidated net profit attributable to shareholders of the Company for the financial year ended 31 December 2015 was
RM4.0 million, a reduction of RM14.8 million or 79% compared to the net profit attributable to shareholders of RM18.8 million
for the preceding financial year was mainly due to better performances by our non-wholly owned subsidiaries. This translated
to basic earnings per share in year 2015 of 0.39 sen compared to basic earnings per share of 1.86 sen in year 2014.
CASH FLOWS
in RM’000
NET DEBT
WORKING CAPITAL
2014
(26,317)
153%
2014
95,039
38%
2015
(66,482)
2015
130,727
FREE CASH FLOW
CAPITAL EXPENDITURE
2014
32,742
14%
2014
9,082
21%
2015
37,381
2015
7,197
The free cash flow increased from RM32.7 million to RM37.4 million in year 2015 due to higher net cash generated from
operations compared to the preceding financial year.
The net cash from operating activities was RM44.5 million and RM40.7 million in year 2015 and 2014 respectively. The
improvement in net operating cash inflow was mainly due to improvement in Group’s collections from its customers in year
2015. The net cash from financing activities increased from RM4.4 million net cash outflow in year 2014 to RM6.2 million net
cash inflow in year 2015 as a result of proceeds from issuance of shares in year 2015 following conversion of the warrants
and higher loan repayment.
Net cash used for investing activities decreased from RM21.2 million in the preceding financial year to RM7.4 million in year
2015. The improvement in cash flow for investing activities mainly due to lower capital expenditure and lower fixed deposits
with maturity period of more than 3 months in year 2015.
Our Group has cash and cash equivalent of RM105.1 million as at the end of year 2015 compared to RM52.6 million at the
end of year 2014. The Group will continue to exercise prudence in cash flow management while conserving the cash for
potential future expansion and investing activities.
FINANCIAL POSITION
The Group’s shareholders’ fund improved from RM206.8 million as at 31 December 2014 to RM236.6 million as at 31
December 2015 due to increase in retained earnings.
Total assets of the Group increased from RM356.4 million as at 31 December 2014 to RM389.9 million as at 31 December
2015. Total Group’s liabilities of RM118.6 million as at 31 December 2015 were slightly higher by RM2.0 million or 2%
compared to the previous year. The Group’s borrowings also increased from RM37.5 million in year 2014 to RM43.3 million
in year 2015.
The total Group’s borrowings as at 31 December 2015 that is repayable within one year with the balance spread over 2
to 7 years is 39%. Singapore Dollar borrowings represented 46% of the total borrowings whilst borrowings denominated
in Taiwan Dollars and Ringgit Malaysia made up 30% and 24% of the total borrowings respectively. Foreign currency
borrowings were drawn to hedge against our Group’s overseas investments and receivables which were denominated in
foreign currencies.