ENRA Group Berhad Annual Report 2021

PERFORMANCE REVIEW Annual Report 2021 | ENRA Group Berhad 7 Dear Shareholders, On behalf of the Board of Directors of ENRA Group Berhad, I am pleased to present the Annual Report and Audited Financial Statements for the financial year ended 31 March 2021. “ “ The COVID-19 pandemic was unforeseen and unprecedented, resulting in global lockdowns for most of 2020. Malaysia’s own lockdown was initiated at in March 2020, which coincided with only the last month of FYE 2020 but continued in various forms of intensity for most of FYE 2021. The Malaysian economy was badly affected by the lockdown. In my Chairman’s Statement last year, I shared my belief that our businesses would be able to weather the pandemic and the difficulties that would arise from it. I am pleased and proud that FYE 2021 was a year of development for ENRA and that we are in an operationally profitable position because of a key strategic decision made 6 years ago – diversifying into businesses with recurring income. Although the Property Development division was badly affected – due to delays in approvals and the inability to launch in a timely manner – the Group was not materially affected due to the contribution from the Energy Services division. There was, of course, a slowdown in customers’ orders which resulted in a drop of revenue for the year, the effect was mitigated by higher margins due to several operational improvements. Overall, FYE 2021 was still an active year for ENRA with four key milestones achieved: • ENRA SPM completed the acquisition and modification of Ratu ENRA and safely delivered it to the Yetagun oilfield, all during the peak of the lockdowns in Malaysia and Singapore. This is a testament to the capability of the team at ENRA SPM, who successfully completed this project. The introduction of Ratu ENRA to the Yetagun field gave us more effective and efficient control over various aspects of operations, which improved margins significantly. • ENRA Kimia completed a new facility in Kemanan, Terengganu despite forced delays in construction due to the pandemic. ENRA Kimia’s business had outgrown its legacy facilities and this new facility no longer impedes ENRA Kimia’s operational capacity. As such, ENRA Kimia is now poised to grow further with new products and services. • Q Homes launched its maiden quality affordable terrace house development in Teluk Panglima Garang in March 2021, which sold out quickly. The other projects in the pipeline were delayed by slow approvals and the lockdown. • ENRA Land’s retirement home development in the UK has been granted development approval after lengthy delays arising from the pandemic. ENRA Land is now actively evaluating options for the development of this project. CHAIRMAN’S STATEMENT