PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 14 Dear Valued Shareholders, I would like to thank you for your continuous trust and support for the Company. This year is a busy year for our Group. The first significant event was the listing of the shares of Furniweb Holdings Limited (our Manufacturing Division), on the GEM of the HKEX on 16 October 2017. This marked a step of the Group towards its next stage of growth in the global market. Apart from that, several collaboration agreements were signed with established partners such as SPNB, JPC & Mingfa to continue building up Property Development & Construction Division in becoming one of the significant market players. Subject to shareholders approval, our Group has also identified healthcare as a potential sector to diversify into with a potential to grow our revenue and improve returns. G r o u p M a n a g i n g D i r e c t o r ’ s M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s FINANCIAL REVIEW During FY2017, the Group recorded total revenue of RM193.0 million, an increase of 46% as compared to total revenue of RM132.1 million recorded last year. The profit before tax for FY2017 increased to RM15.8 million from RM5.9 million, an increase of RM9.9 million or 168% as compared to its previous corresponding year. Should the non-recurring listing expenses of Furniweb amounted RM10.8 million (2016: RM3.1 million) and one-off recognition of gain on disposal of part of Group’s interest in FCV (VN) of RM6.8 million (2016: NIL) be excluded, the Group would record an adjusted profit before tax of RM19.8 million (2016: RM9.0 million), representing an increase of RM10.8 million or 120% as compared to last year. The increase in revenue and profit before tax for FY2017 was mainly contributed by better performance in Property Development & Construction and Manufacturing Divisions. Nevertheless, the Group’s financial position remains healthy with a net cash position with a total cash pile of RM42.0 million and borrowings of RM28.6 million, which provides us ample room to grow. The Group’s high cash balance arose mainly from surplus listing proceeds after setting off the listing expenses and utilisation to fund the expansion of production capacity. Total assets increased from RM287.5 million to RM380.9 million in FY2017. As at 31 December 2017, the shareholders’ equity of the Company was RM164.7 million. The net assets per share at the end of current financial year of RM0.45 per share improved over prior year’s RM0.42 per share.