16 SECTION 03 : LEADERSHIP Management Discussion and Analysis (Cont’d) FINANCIAL POSITION OVERVIEW The Group’s financial position strengthened during FYE 2026, as reflected in the following: • Net assets increased to RM54.3 million as at 31 March 2026 from RM40.0 million as at 31 March 2025; • Gearing3 decreased to 0.60 times from 0.85 times; and • Cash and cash equivalents increased to RM16.2 million from RM4.4 million. 3 Total Borrowings ÷ Total Equity Attributable to Equity Holders of the Company FUTURE PROSPECTS Energy Logistics The outlook for the Energy Logistics division is supported by the Group’s operating capabilities, established industry relationships and existing asset base, including the Hexagon Alpha and its SPM capabilities. The division will continue to pursue selected FSO and SPM opportunities in the region, with an emphasis on operational reliability, asset utilisation and disciplined capital deployment. Demand for offshore storage, transportation and mooring solutions will continue to be influenced by oilfield development activity, commodity prices, geopolitical conditions, shipping-route disruptions and the pace of the global energy transition. While these factors may create new opportunities, they may also result in fluctuations in project timing, asset utilisation and operating costs. Against this operating environment, the division will adopt a selective approach to new opportunities and will evaluate projects based on their expected returns, contractual risk and strategic fit. Property Development During the year, the Malaysian residential property market showed signs of gradual improvement, particularly within the affordable and mid-market segments. Nevertheless, the sector continued to face challenges arising from affordability constraints, cautious consumer spending and construction-cost pressures. The Group intends to focus primarily on selected opportunities in Malaysia, including the progression of its proposed developments in Kulai and Jenjarom. New investments will be evaluated with regard to market demand, approval requirements, funding needs and expected returns. The proposed Rugby development remains subject to challenging market conditions in the UK, including elevated financing costs, currency movements and broader economic uncertainty. Management will continue to assess the available options for the asset with the objective of optimising value realisation. MRO Services The MRO Services division will continue to market its services to government and commercial customers, with a focus on diesel power-generation and propulsion systems. It will also pursue selected collaborations in Malaysia and overseas to expand its technical capabilities, customer base and project pipeline. The division will target opportunities in the oil and gas, marine and transportation sectors while maintaining a disciplined approach to project selection and execution. CONCLUSION Following the return to profitability in FYE 2026, the Group will focus on sustaining the performance of its Energy Logistics division, progressing its Malaysian property development pipeline and expanding the order book of the MRO Services division. At the same time, the Group will continue to exercise financial discipline, manage execution and market risks, and evaluate new investments selectively to support sustainable long-term value creation.
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