Excel Force MSC Berhad Annual Report 2015

E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 8 Dear Shareholders, On behalf of the Board of Directors of ExcelForce, I am delighted to present the Annual Report and the Audited Financial Statements of Excel Force Group (the “Group”) for the financial year ended 31 December 2015. While we are focusing on our existing product development and enhancement which contribute the bulk of revenue for the Group currently, we also embark on development of an integrated advance solution which come with the combination of front, mid and back office with multiple platform. We expect the development to be completed this year. CHAIRMAN’S STATEMENT Performance Review For the financial year ended 31 December 2015, the Group registered a turnover of RM25.28 million, increased by 16% or RM3.4 million compared to the same corresponding period last year. The increase in revenue is mainly contributed from Application Solution (AS) segment, where RM1.5 million is due to consolidation of subsidiaries accounts. Profit before tax (PBT) for the period under review stoodat RM9.65million, loweredby RM672K or 6.5%as compared to the same period last year. The increase in revenue has been offset by higher operating expenditures mainly due to consolidation of the subsidiaries accounts, the other factor is that the previous year’s other income includes the one-off gain on disposal of office premise at Jaya One. Excluding the one-off gain, the PBT for the period will be higher by 8% compared to the same period last year. The profit after tax (PAT) recorded at RM7.57 million, a decrease of RM1.28 million or 14% compared to corresponding period last year. This is mainly due to higher tax expenses for current year and write-back of deferred taxation compared to previous year. Excluding the one-off gain, the PAT will be higher by 2%. INDUSTRY TREND AND DEVELOPMENT With the current challenging economic conditions, we foresee that clients will allocate lower budget on capital expenditure, particularly on the enhancement portion. In addressing the issues, the Group is focusing on development of advance technology solutions that can assist clients to minimize their operating costs, increase efficiency and productivity. The newly-enhance version of mobile application solution will provide more features compared to its older version, hence will boost the marketability of the product. This in turn will convert into higher contribution to the Group. The new version is expected to be launched by mid 2016.