ENRA Group Berhad Annual Report 2021

LEADERSHIP Annual Report 2021 | ENRA Group Berhad 21 CONCLUSION AND FUTURE It was unforeseeable and unfortunate that immediately after FYE 2020 (a year of profit for ENRA Group), the COVID-19 pandemic happened and affected all manner of businesses on a global scale. Despite this major setback, we persevered and focused on ensuring all operations continued smoothly despite the uncertain business environment and increase in operating costs. We are pleased, however, that the Group’s presence in different businesses helped hedge the Group against the pandemic. Though the Property Development division could not operate properly, the Energy Services division helped see the Group through FYE 2021. This experience emphasises the importance of a diversified business and ENRA Group will continue to apply this principle moving forward in its pursuit of growth. As vaccinations reach a wider population, we anticipate that various countries (including Malaysia) will be able to soften standard operating procedures that have impacted many operations across all industries and substantially increased the cost of business. As such, the cost of operations is likely to stabilise to pre-pandemic levels and we believe this will have a positive impact to the Group’s profitability. Overall, ENRA Group and its management are positive about a perceived economic recovery post-pandemic and the upside it should bring to our businesses. The Group did not declare any dividends to shareholders for FYE 2021. However, ENRA issued free warrants on the basis of 1 free warrant for every 3 existing ordinary shares of ENRA on 23 December 2020 for FYE 2021. The Board’s consideration to reward shareholders will continue to be guided by the Group’s operational needs and investment opportunities. MANAGEMENT DISCUSSION AND ANALYSIS