EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 9 management discussion and analysis 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 the stockbroking companies and investment banks. EForce organises its business activities into three (3) segments. They are: (a) Application Solutions ("AS") Sales of software applications and product on outright purchase basis. (b) Maintenance Services ("MS") Provision of maintenance services. (c) Application Services Provider ("ASP") Provision of application services on monthly recurring fixed and variable charges. REVIEW OF FINANCIAL RESULTS The Group achieved revenue of RM23 million in FYE 2019, mainly derived from ASP segment. Profit before tax (PBT) was RM8.3 million, higher by RM355,000 or 5% compared to last financial year. The improved bottom line was due to better cost management and higher interest income earned. Profit after tax (PAT) for FYE 2019 stood at RM6.5 million, a decrease of RM186,000 compared to same corresponding period in 2018, due to higher taxation expenses. Total assets of the Group stood at RM101.4 million, an increase by RM42.7 million mainly due to cash infusion from conversion of warrant into equity capital in July 2019. The cash has been invested into properties and quoted shares. Total liability of the Group stood at RM5 million, which is RM6.6 million lower compared to 2018 due to recognition of progress billing made for purchase of commercial space as fixed assets. This Statement contains the Management discussion and analysis of the business operation and performance of the Group for the financial year ended 31 December 2019. It should be read in conjunction with the audited financial statements of the Group as set out in this Annual Report. REVENUE FYE2019 RM23 MILLION PAT FYE2019 RM6.4 MILLION TOTAL ASSETS FYE2019 RM101.4 MILLION 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 demand reliable and stable solutions to fulfil their critical role as capital market intermediaries. Over the years, EForce has earned a commondable reputation in consistently meeting, and at times, exceeding customers' expectations. The Group collaborates closely with customers to continuously assess their evolving business needs and develop good quality applications to fulfil them.