Frontken Berhad Annual Report 2020

Annual Report 2020 15 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Financial Review (cont’d) The consolidated net profit attributable to shareholders of the Company for FYE2020 was RM82.0 million, an increase of RM12.8 million or 19% compared to the net profit attributable to shareholders of RM69.2 million for the preceding financial year. This translated to basic earnings per share in FYE2020 of 7.82 sen compared to basic earnings per share of 6.60 sen in the previous financial year. CASH FLOWS in RM’000 NET CASH WORKING CAPITAL 2019 198,929 47% 2019 232,279 31% 2020 291,530 2020 304,500 FREE CASH FLOW CAPITAL EXPENDITURE 2019 107,884 6% 2019 7,146 10% 2020 113,997 2020 7,890 The free cash flow increased from RM107.9 million to RM114.0 million in FYE2020 mainly due to higher cash generated from operations, enhance working capital management and higher proceeds from disposal of property, plant and equipment compared to the preceding financial year. The net cash from operating activities was RM119.7 million and RM114.9 million in year 2020 and 2019 respectively. The net cash outflow for financing activities was RM33.9 million in year 2020 as compared to RM33.7 million in year 2019 mainly due to higher dividend payment in year 2020 as compared to the preceding financial year. Net cash used for investing activities decreased from RM12.1 million in the preceding financial year to RM11.9 million in year 2020. The decrease in cash outflow for investing activities was mainly due to higher proceeds from disposal of property, plant and equipment. The Group has cash and cash equivalents of RM299.8 million as at the end of year 2020 compared to RM219.7 million at the end of year 2019. Amid the challenging business conditions, the Group will continue to exercise prudence in cash flow management while conserving the cash for dividend payment, potential future expansion and investing activities. FINANCIAL POSITION The Group’s shareholders’ fund improved from RM377.0 million as at 31 December 2019 to RM440.0 million as at 31 December 2020. Total assets of the Group increased from RM515.7 million as at 31 December 2019 to RM618.3 million as at 31 December 2020 mainly due to increase in cash and bank balances by RM93.3 million. Total Group’s liabilities of RM151.2 million as at 31 December 2020 were higher by RM34.3 million or 29% compared to the previous year mainly due to advances received and accrued expenses.