ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 14 MANAGEMENT DISCUSSION AND ANALYSIS ENRA Group Berhad has returned to profitability for the financial year ended 31 March 2020 despite the volatility in oil price and the rapidly changing business environment. FYE 2020 had been a busy, yet exciting year for us. We explored new revenue streams in FYE 2019 and these efforts have started to bear fruit in FYE 2020. We have also undertaken the initiative to optimise our operations in Myanmar which has also improved our financial performance in FYE 2020. These initiatives will be elaborated further in the following sections. For the year under review, we: i. achieved a year of notable growth with total group revenue rising 37.6% to RM226.65 mil from RM164.71 mil in financial year ending 31 March 2019 (“FYE 2019”), driven by commendable performances by both the Energy Services and Property Development divisions; ii. recorded a PATAMI of RM2.48 mil compared to LATAMI without Exceptional Items of RM1.91 mil in FYE 2019. This significant improvement was in line with higher revenue, lower operating costs and the absence of exceptional losses; iii. completed the sales of all our Portland Chambers flats in London, United Kingdom (“UK”), significantly increasing the Group’s cash position, and providing opportunities for re-investment in the Group’s businesses; iv. acquired our first tanker, Ratu ENRA, on 8 January 2020 and our first fully-classed single point mooring system (“SPM”) on 18 February 2020 for RM38.87 mil and RM14.52 mil respectively. Despite the sudden restrictions in logistics and operations caused by the ongoing pandemic COVID-19, these assets were modified in early 2020, deployed and commissioned by 23 May 2020 to service our current offshore oil & gas (“O&G”) project located at Yetagun offshore gas field off the coast of Myanmar; and v. received planning approval (through our subsidiary, ENRA Land Sdn. Bhd. (“ELand”)) for the development of a lifestyle retirement home in Rugby, England in February 2020. ELand had, on 27 March 2019 acquired a 51% stake in Abode Senior Living Limited to participate in the said venture, thus continuing our presence in the property development sector in the UK.