ENRA Group Berhad Annual Report 2019

14 ENRA GROUP BERHAD ∞ Annual Report 2019 page ENRA Group Berhad (“ENRA”) and its subsidiaries (collectively the “Group”) concluded the financial year ended (“FYE”) 31 March 2019 (“FYE 2019”) on a strong footing despite the less than conducive economic environment in Malaysia. The Group’s prudent approach to business shielded us from the various challenges arising from the volatile oil & gas industry and soft real estate market. Operationally and excluding one-off exceptional items, the Group generated positive cash flow for the year, and grew its revenue and earnings substantially. For the year under review, the Group: • Completed the divestment of investment properties and raised capital to support new projects and ventures; • Successfully installed and began operating our maiden floating storage and offloading solution for one of Petroliam Nasional Berhad’s (“PETRONAS”) offshore gas fields in Myanmar, which will generate additional recurring income for the Group; • Completed the acquisition of International Chemicals Engineering Pty Ltd (“ICE”), a Melbourne-based odorants distributor, as part of geographical diversification and expansion for the Group’s downstream specialty chemicals business – ICE has performed admirably since our acquisition; • Completed 93 Great Titchfield Street (Portland Chambers) in Central London and, by first half of the financial year of 2020, sold the two largest apartments despite the very challenging London residential market; • Successfully pursued legal efforts to claim monies owed to ENRA Engineering & Fabrication Sdn Bhd (“EEFAB”) by a customer; and • Identified new projects that we believe will contribute positively to the Group’s future performance. Premised on the foregoing, this financial year was an active period for us, with the completion of the initiatives from the previous financial year yielding significant increases in financial performance in FYE 2019. Despite some setbacks beyond our control and the weak market environment, the Group’s diligent efforts as well as its conservative approach in deploying capital has enabled us to weather these challenges, and we are pleased to share the results of our efforts. As such, the Group begins the financial year of 2020 on a stable footing with a healthy balance sheet and sufficient capital to pursue more aggressive opportunities when the market environment improves. FYE 2019 - GROUP’S FINANCIAL PERFORMANCE The Group concluded FYE 2019 having expanded the Energy Services Division (referred to as the Energy Division in the previous financial year) significantly during the year due to the consolidation of ICE, operations of ENRA SPM Sdn Bhd (“ESPM”), and increased demand for ENRA Kimia Sdn Bhd’s (“EKSB”) specialty chemicals. As a result, overall revenue has increased significantly by 118.8% YoY to RM164.7 million. Revenue from Continuing Operations Management Discussion and Analysis RM179.3 mil RM75.3 mil RM164.7 mil FYE 2017 FYE 2018 FYE 2019