PRG Holdings Berhad Annual Report 2018

group managing director’s management discussion and analysis (continued) PRG HOLD I NGS BERHAD 15 FINANCIAL REVIEW During the FY2018, the Group recorded total revenue of RM148.6 million, representing RM10.0 million or 6% decrease as compared to the restated revenue of RM158.6 million recorded in the previous financial year. PRG reported loss before tax of RM5.3 million, representing a reduction of RM11.8 million as compared to the restated profit before tax of RM6.5 million in the previous financial year. The decrease in the Group’s revenue and profit before tax during FY2018 was mainly due to contraction of revenue from manufacturing segment resulted from decrease in sales volume of certain products and the focus of lower margin products due to competitive market condition. The decrease in profit before tax was also contributed by the adoption of Malaysian Financial Reporting Standards (“MFRS”) with effect from 1 January 2018, affecting Gross Development Value and Gross Development Costs, as well as certain initial non-recurring expenses incurred for acquisitions of healthcare businesses during FY2018. Nevertheless, the Group still maintains healthy financial position with net tangible assets of RM170.8 million and low gearing ratio of 9%. The Group’s total assets grew from RM432.2 million in the financial year ended 31 December 2017 (“FY2017”) to RM433.7 million in FY2018. As at 31 December 2018, the shareholders’ equity of the Company was RM132.0 million. The net assets per share at the end of current financial year of RM0.43 per share.