ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 15 MANAGEMENT DISCUSSION AND ANALYSIS OVERALL FINANCIAL PERFORMANCE ENRA’s FYE 2020 total revenue increased by 37.6% to RM226.65 mil from RM164.71 mil in FYE 2019 as both business divisions, Energy Services and Property Development, performed admirably during the year. We booked a PBT of RM8.36 mil in FYE 2020, returning to the black after a LBT of RM23.28 mil in FYE 2019 that was caused by Exceptional Items comprising of a RM9.30 mil write down in inventories and RM15.26 mil impairment loss on trade receivables related to a completed construction project in FYE 2019. In line with the improvement in PBT, FYE 2020’s PATAMI was higher at RM2.48 mil compared to a LATAMI of RM24.61 mil in the previous financial year. REVENUE FYE 2018 FYE 2019 FYE 2020 RM75.3 mil RM164.7 mil RM226.6 mil PBT FYE 2018 FYE 2019 (Including Exceptional Items) FYE 2020 FYE 2019 (Excluding Exceptional Items) (RM1.4 mil) (RM23.3 mil) RM4.3 mil RM8.4 mil The Energy Services division continued to grow steadily, recording RM174.68 mil in revenue or an 8.0% increase from FYE 2019’s RM161.81 mil driven by higher specialty chemical and gas odorant’s sales volumes. This segment continues to be the main revenue generator to the Group, generating 77.1% of total revenue for FYE 2020. The Property Development division also exhibited marked improvement during the financial year under review. Revenue rose from a mere RM2.89 mil in FYE 2019 to RM51.96 mil in FYE 2020 mainly from the sales of all of our Portland Chambers flats in London, UK. Set out below is the Group’s performance measured via two profitability indicators: FYE 2019 FYE 2020 REMARKS Including Exceptional Items Excluding Exceptional Items Improvement in ROE and ROA in FYE 2020 were in line with the overall improvement of ENRA’s profitability Profitability Return on Equity (“ROE”) -19.6% -1.6% 2.0% Operational Efficiency Return on Assets (“ROA”) -9.1% -0.7% 0.8%