2 LEADERSHIP INSIGHTS 31 ASSET CONSULTANCY 38% increase in book order HEALTHCARE SOLUTIONS Strong rate of contract renewal across Singapore and Taiwan INFRASTRUCTURE SERVICES Secured multiple contract wins linked to highway upgrading in the Southern region We continued to operate in a high-cost environment that placed pressure on businesses across different sectors. Rising wage requirements increased labour costs, volatility in utilities and materials continued to weigh on expenses, and broader economic uncertainty linked to trade and tariff developments constrained investment. In response to this environment, we undertook a deliberate portfolio optimisation exercise, exiting selected non-core contracts where margins no longer met our requirements. While this streamlining reduced operational complexity and sharpened focus, it contributed to a 6.2% decline in Group revenue to RM2,861.0 million. Revenue was also affected by lower translated contributions from international operations following the strengthening of the Malaysian Ringgit. For the year, the Group recorded a loss after tax and zakat (“LAT”) of RM412.9 million, compared with a profit after tax and zakat (“PAT”) of RM45.2 million in FY2024. This outcome was driven primarily by one-off, non-cash impairments arising from a reassessment of asset values after revising our cash flow expectations in certain concession portfolios. Profitability was also affected by margin pressures arising from higher regulatory compliance costs and broader economic uncertainty. Notwithstanding these accounting adjustments, the Group’s underlying fundamentals and balance sheet remained solid. KEY WINS AND DEVELOPMENTS Despite these headwinds, one of the clearest signs of resilience in our business was our continued momentum in renewing existing contracts, securing new work, and expanding into higher-value and more complex scopes. Our Property and Facility Solutions division was a major contributor, securing a range of residential and commercial projects in Malaysia and overseas, including key wins in the United Arab Emirates (“UAE”) and the Kingdom of Saudi Arabia (“KSA”). The division also secured new integrated facilities management (“IFM”) contracts, marking our expansion beyond the commercial sector into more complex, multi-site industrial environments. Within our Healthcare Solutions division, we achieved a high rate of contract renewal across Singapore and Taiwan, reflecting our continued focus on service quality and performance, supported by technology. Our non-concession portfolio also expanded, while the division secured wins and renewals in Biomedical Engineering Maintenance Services (“BEMS”) and Facilities Engineering Maintenance Services (“FEMS”), clinical waste management, housekeeping and cleansing. Our Asset Consultancy arm, Opus Consultants, increased its order book by 38% during the year, securing projects including lane widening works in Johor and the renewal of its Network Maintenance Management contract. Meanwhile, Infrastructure Services secured new wins linked to highway upgrades, airport maintenance, and a geothermal supply contract for a power plant in Bandung, Indonesia. These achievements are supported by long-term concession arrangements, established operating processes and economies of scale which reinforce our position as a leading infrastructure maintenance specialist. Taken together, these developments reflect a dynamic and competitive business, underpinned by strong customer relationships and continued relevance across our core markets. At the same time, operating within a persistently high-cost environment limited the extent to which this momentum translated into bottom-line performance. This made it clear that we needed to rethink how we pursue growth. ADAPTING TO NEW REALITIES The developments above encapsulate the challenges of FY2025 in many respects. While our businesses continued to perform resiliently, it became increasingly apparent that we are operating against a shifting economic backdrop that is changing the priorities of asset owners and necessitating a different approach to value creation. 2025 was a year defined by a multitude of worldwide events impacting our business, whilst also giving rise to new opportunities for us. PROPERTY AND FACILITY SOLUTIONS New Integrated Facilities Management contracts in extended sectors
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