Section 3 UEM Edgenta Berhad FROM OUR LEADERSHIP 44 FINANCIAL REVIEW FINANCIAL POSITION KEY INFORMATION OF FINANCIAL POSITION 2023 RM million 2022 RM million Variance RM million % Total Assets 2,954.3 2,868.7 85.6 3.0% Property, plant and equipment 151.8 146.4 5.4 3.7% Right-of-use assets 35.6 44.2 -8.6 -19.5% Intangible assets 710.4 700.9 9.5 1.4% Investment in associates 71.8 72.3 -0.5 -0.7% Trade and other receivables 713.8 599.0 114.8 19.2% Contract-related assets 474.0 433.1 40.9 9.4% Short-term investments 26.6 97.2 -70.6 -72.6% Cash, bank balances and deposits 615.8 609.5 6.3 1.0% Total Liabilities 1,330.1 1,284.6 45.5 3.5% Borrowings 489.9 458.8 31.1 6.8% Trade and other payables 695.7 676.2 19.5 2.9% Lease liabilities 33.0 41.0 -8.0 -19.5% Contract liabilities 31.9 30.8 1.1 3.6% Total Equity 1,624.3 1,584.0 40.3 2.5% Shareholders' fund 1,619.3 1,580.9 38.4 2.4% Non-controlling interests 5.0 3.1 1.9 61.3% Our financial position continued to remain robust in 2023. At the end of the year, the Group’s total assets grew by 3.0%, increasing from RM2.87 billion as at 31 December 2022 (“FY2022”) to RM2.95 billion as at 31 December 2023 (“FY2023”). Similarly, net assets per share also increased from RM1.90 per share to RM1.95 per share when comparing FY2022 to FY2023. These increments in both total assets and net assets align with the growth in revenue, as well as higher valuation of international investments, particularly from Singapore and Taiwan, due to the strengthening of the Singapore Dollar against the Malaysian Ringgit. Our efforts to enhance our collection process have yielded positive outcomes, as evidenced by a RM269.1 million (10.0% Y-o-Y) increase in collection from customers, totalling to RM2.96 billion in 2023. However, our net cash position declined from RM247.9 million in FY2022 to RM152.6 million in FY2023, primarily attributed to higher working capital requirements and the need to support investment for growth. Looking ahead, strategic initiatives like the Treasury Management Centre are set to enhance cash management, indicating a forward-looking approach to financial stewardship and growth. Our cash and bank balances, inclusive of fixed deposits and funds in money market unit trusts, remained healthy at RM642.4 million at the end of the financial year, compared to RM706.7 million in 2022. We also maintained a low gearing ratio of 0.30x in FY2023 (FY2022: 0.29x), demonstrating our effective debt management capabilities. The combination of our strong financial position, solid financial foundation and low gearing ratio provides us with ample flexibility to navigate short-term volatility and allows us to maintain the capacity to leverage for future strategic growth and development. Notwithstanding the operational cost challenges that affected our bottom line, we were able to maintain our dividend distribution trend post-COVID by issuing a dividend of 2 sen per share, reflecting our strong commitment to delivering value to our shareholders. The dividend payout adheres to our dividend payout policy of 50%-80% of PATANCI, aimed at providing sustainable long-term returns to our shareholders.
RkJQdWJsaXNoZXIy NDgzMzc=