FINANCIAL REVIEW Destini strengthened its balance sheet and managed its cashflow prudently on top of tightening capital and operating expenditure by advocating a disciplined approach to capital allocation and managing liquidity. This has enabled us to weather the adverse challenges during the year in review. Notwithstanding that, Destini was able to return profitable by reporting a profit after tax and non-controlling interest (“PATNCI”) of RM3.01 million in FYE2021 as compared to a loss after tax and non-controlling interest (“LATNCI”) of RM190.64 million the previous year. Revenue however saw an 8% decline to RM173.87 million in FYE2021 from RM190.12 million in FYE2020. During the year in review, the Group was able to generate better earnings from the continuation of several projects under its aviation and defence business segment. As restrictions began to relax, more aircraft MRO activities saw a revival as more aircrafts started to fly again. In addition, the Group saw commendable progress on the supply of its six MD530G helicopters to the Royal Malaysian Army (“RMA”) that is moving towards the completion of the remaining contract obligations that were put to halt due to the pandemic in the previous year. Echoing the aviation and defence segments revival is the Groups energy segment that contributed to thebottomline of the Group with the execution of projects that were deferred during the peak of the pandemic. The Group had also secured additional contracts during the year in review which saw a boost in activities in its energy segment. The Group’s financial performance reflected the impact from a combination of factors which include cashflow difficulties and lower business activities due to prolonged pandemic restrictions imposed by our Government. Nevertheless, strategies were in place and implemented to enable the Group to navigate through the uncertainties. Furthermore, the Group went on an assessment of its investments and re-evaluated its assets to reorganize or dispose of non-performing and non-core assets to ensure optimization of the Group balance sheet, including capital structure. With that Destini went on a corporate exercise to dispose of its 51% equity interest in THHE Destini Sdn Bhd for RM121,131 in April 2021. THHE Destini Sdn Bhd is a joint venture company with TH Heavy Engineering Berhad that was incorporated to fabricate three Offshore Patrol Vessels (“OPV”) for the Malaysian Maritime Enforcement Agency (“MMEA”). More details on the Group’s business segments financial review will be elaborated further in this Annual Reports Operational Review. 31 ANNUAL REPORT 2021 • DESTINI BERHAD
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