ENRA Group Berhad Annual Report 2019

6 ENRA GROUP BERHAD ∞ Annual Report 2019 page Dear Shareholders, On behalf of the Board of Directors of ENRA Group Berhad (“ENRA” or the “Group”) (the “Board”), I am pleased to present the Annual Report andAudited Financial Statements for the financial year ended 31 March 2019 (“FYE 2019”), as attached. The Group remains cognisant of the volatility and competitiveness of the oil & gas industry, and the soft real estate market in Malaysia. As such, the Board and management have maintained a conservative stance in its business expansion efforts – prioritising stability and balance sheet health, and pursuing less aggressive projects and investments. In line with this prudent approach, the Group divested its low-yielding limited growth investment properties (which completed in FYE 2019) and embarked on new opportunities in the oil & gas space which, by nature, provide longer term recurring stable income. I am pleased that in FYE 2019, having completed all of what we started in FYE 2018, our efforts are bearing fruit, though there have been some unfortunate setbacks through no fault of our own. Overall, we end FYE 2019 on a strong footing, with our prudent approach to business shielding the Group from the various challenges affecting both oil & gas and real estate. Operationally and excluding one-off exceptional items, the Group generated positive cash flow for the year, grew its revenue and earnings substantially, and is poised to continue this growth trend. Our balance sheet remains healthy, with sufficient capital to pursue more aggressive opportunities when the market environment improves. The Energy Services division under which our oil & gas businesses are thriving is still growing steadily, with revenue growing threefold from the previous year and profit before tax for the division demonstrating its third consecutive year of growth. In line with our successful forays in FYE 2019, the team continues to explore more investments and projects in both our upstream and downstream sub-sectors. Generally, the Property Development division has been cautious and diligent on the property sector for the last 2 financial years but we are pleased to be embarking on two new real estate ventures – a multi-apartment development in the UK targeting a niche but growing area of retirement living, and the setting up of Q Homes Sdn Bhd to target the largest residential market segment in Klang Valley. ENRA has, in a short space of time, successfully diversified into oil & gas in addition to property development, and I am proud that our businesses are built on meritocratic quantitative and qualitative fundamentals. I look forward to this continuing growth and for greater things to come. Thank you. Datuk Ali bin Abdul Kadir Chairman 25 June 2019 Chairman’s Statement