ENRA Group Berhad Annual Report 2018

19 A N N U A L R E P O R T 2 0 1 8 MANAGEMENT DISCUSSION AND ANALYSIS cont’d FYE 2018 OVERALL FINANCIAL PERFORMANCE The Group’s financial performance experienced a decline largely due to the completion of Shamelin Star. Sales from the project had slowed down and only 15 units remain for sale by ENRA. Further, the property market has been challenging and slow throughout the year. The Group’s maiden UK project – Portland Chambers is expected to be completed in the second quarter of FYE 31 March 2019. The O&G division continues to grow and now contributes substantially to the Group. The Group’s total operational expenditure increased slightly from RM26.6 million in FYE 31 March 2017 to RM27.9 million in FYE 31 March 2018 as the Group embarked on group-wide cost management initiatives to control expenditure and made minimal additions to its workforce. Overall, the Group made a PATAMI of RM1.0 million for FYE 31 March 2018. As set out above, Management exerted efforts to capture and develop business opportunities and projects in FYE 31 March 2018 that will contribute to earnings in the next financial year (FYE 31 March 2019). A strong balance sheet also places the Group in a position to pursue further projects and investment opportunities more aggressively. FYE 2017 FYE 2018 ASPECT AND INDICATORS CONTINUING OPERATIONS ONLY CONSOLIDATED (continuing & discontinued) CONTINUING OPERATIONS ONLY CONSOLIDATED (continuing & discontinued) REMARKS PROFITABILITY Return on Equity (“ ROE ”) (PATAMI / Equity) 7.8% (47.2%) (1.4%) 0.7% Reduced profitability in FYE 31 March 2018 mainly attributed to the completion of Shamelin Star, and lower income from a smaller number of available units for sale. OPERATIONAL EFFICIENCY Return on Assets (“ ROA ”) (PATAMI / Total Assets) 3.7% (22.3%) (0.8%) 0.4% Negative operational efficiency due to lower contribution from the Property Division. RM122.3 mil RM179.3 mil RM75.3 mil FYE 2016 FYE 2017 FYE 2018 Revenue from continuing operations