14 MSC BERHAD This Statement contains the Group’s review and analysis of the business operation and performance for the financial year ended 30 June 2024. It should be read in conjunction with the audited financial statements of the Group as set out in this Annual Report. BUSINESS REVIEW EForce is a leading information technology solution provider involved in the development, provision and maintenance of application and system solutions for the financial services industry, specifically stockbroking companies and investment banks. EForce organises its business activities into four (4) segments. They are: 1. Application Solutions (“AS”) for sales of software applications and product on an outright purchase basis. 2. Maintenance Services (“MS”) for provision of maintenance services. 3. Application Services Provider (“ASP”) for provision of application services on monthly recurring fixed and variable charges. 4. Others for investment holding and etc. The Group’s products include CyberBroker Front Office (for client-server, web and mobile-based stock trading system), CyberBroker Middle Office, CyberBroker Back Office (including Custodian and Nominee System), StockBanking System (including Share Margin Financing System) and Fundamental Analysis System. EForce customers are accustomed to our reliable and stable solutions to fulfil their mission critical role as capital market intermediaries. Over the years, EForce earned and retained a solid reputation in consistently meeting, and at times, exceeding customers’ expectations. The Group adopts a collaborative approach with customers to continuously assess their evolving business needs and develop good quality and timely applications to fulfil them. REVIEW OF FINANCIAL RESULTS For the 12 months period to 30 June 2024, the Group achieved total revenue of RM29 million, mainly contributed by ASP segment, make up of 70% of total revenue. The Profit Before Tax (“PBT”) and Profit After Tax (“PAT”) were at RM11.28 million and RM8.28 million or 39% and 29% margin to revenue respectively. ASP revenue segment performance is predicated on the trading volume and value of Bursa Malaysia. There were 37 IPOs in the period under review and an increase in average daily value, particularly in 1st half of 2024, by 59% compared to end of 2023 (Source: Bursa Malaysia). Together with positive economic sentiments and expected interest rate movements in major economies, these have a positive effect on Bursa trading activities. Due to change in financial year, whereby the previous financial period was made up of 18 months period, there is no meaningful comparison that can be shared here. REVIEW OF OPERATIONS The Group’s business performance is supported by a cohesive and flexible operational management structure, quick to adapt to changing business needs and maintain focus and discipline to execute projects critical to our long-term growth. EForce continues to work closely with our customers and monitor emerging trends locally and globally to uncover opportunities for new applications and enhancements to our product line-up. To grow our competitive edge, in terms of introducing innovative product solutions and maintaining our agility in responding to customers’ needs, we diligently invested in research and development for new products, and in our people to expand and improve on their technical skillset and problem solving ability. The Group rolled out “Be Customer Centric and Be Right First Time” initiative to ensure we do the right things always and shorten time to market. Management Discussion and Analysis
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