ENRA Group Berhad Annual Report 2021

LEADERSHIP Annual Report 2021 | ENRA Group Berhad 19 Property Development MANAGEMENT DISCUSSION AND ANALYSIS RM2.9 mil RM0.7 mil PROPERTY DEVELOPMENT Revenue PBT/(LBT) FYE 2020 FYE 2019 Note: # FYE 2019’s PBT excluded Exceptional Items of RM9.30 mil due to a write down on inventories. Revenue generation for the Property Development division was delayed in FYE 2021 as there were land office and council office closures which affected approvals for ENRA’s various projects. Furthermore, there were no sales from ENRA Land’s maiden London project, 93 GTS, as the final apartment was sold in the final quarter of FYE 2020. As such, revenue from the Property Development division was minimal at RM1.67 mil in FYE 2021 from RM51.96 mil in FYE 2020. However, Q Homes successfully launched its first project at Teluk Panglima Garang, Selangor in March 2021. This RM7.86 mil GDV project comprising of 18 units of semi-detached houses has already been sold out. This division reported a gross profit of only RM0.28 mil for FYE 2021 (a drop from RM2.57 mil in FYE 2020, in line with revenue) as sales recognition is only anticipated to contribute significantly in FYE 2022, in line with construction progress from ENRA Land’s various projects. As such, a LBT of RM1.24 mil was recorded in FYE 2021. FINANCIAL POSITION OVERVIEW ENRA Group ends the financial year with a healthy balance sheet: • Net assets have decreased slightly from RM121.83 mil as at 31 March 2020 to RM114.26 mil as at 31 March 2021 in line with the LATAMI incurred for the financial year; • Gearing has decreased from 0.82 times in FYE 2020 to 0.54 times in FYE 2021 from the continued servicing of the current outstanding loans, primarily those in relation to ENRA SPM’s acquisition of Ratu ENRA in FYE 2020; • Cash and cash equivalents stand at RM35.66 mil which is sufficient to support existing working capital requirements; and • Key assets are still in good condition and supporting ENRA Group’s main operations: o Ratu ENRA, a 26,634 gross tonne oil/chemical tanker operating in the Andaman Sea for PCML; o A 2.5-acre industrial land in Kemaman on which a new distribution facility for ENRA Kimia was completed after FYE 2021 (Certificate of Completion and Compliance was issued on 5 May 2021); and o A 5,705 sq. ft. operating centre and warehouse set on a 0.8-acre industrial land in Dandenong, Victoria, Australia for ICE to service its key clients in Australia and New Zealand. RM1.7 mil (RM1.2 mil) FYE 2021 RM52.0 mil (RM0.6 mil)