MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW Group Revenue and Profitability The Group recorded revenue of RM1,207.41 million in FY2024, which was RM354.84 million (41.6%) higher compared to RM852.57 million recorded in FY2023. The growth in revenue was mainly attributable to the increase in external sales revenue (“external revenue”) generated by the construction and manufacturing and trading (“M&T”) divisions. Gross profit (“GP”) of FY2024 was higher at RM98.47 million compared to RM61.58 million of FY2023 on the back of higher revenue and better GP margin of 8.2% against 7.2% of FY2023. The improvement in GP margin was due to better profitability achieved by the construction and M&T divisions. Other operating income of FY2024 was multifold higher at RM52.06 million compared to RM8.37 million of FY2023 due to the full reversal of allowance of impairment on trade receivable and contract asset aggregating RM43.52 million in relation to a construction project, as the amount had been collected. Administration expenses of FY2024 were higher at RM57.13 million compared to RM38.18 million of FY2023 due to the following: (i) Higher human resources costs, in line with higher scale of operation; and (ii) The Group suffered foreign exchange loss of RM8.24 million in FY2024 resulted from the strengthening of Ringgit Malaysia against Singapore Dollar. In contrast, the Group recorded foreign exchange gains of RM4.14 million in FY2023. Finance costs of FY2024 were higher at RM25.32 million compared to RM15.57 million of FY2023 mainly due to higher utilisation of bank facilities to finance higher scale of operation, and finance costs incurred by a subsidiary acquired during FY2024 (“New Subsidiary”). The effective tax rate of FY2024 was higher than the statutory rate applicable to the Group as certain expenses were disallowed for tax deduction under tax regulations and potential deferred tax benefit on unutilised tax losses, unabsorbed capital allowances and other temporary differences were not recognised on prudent basis. Overall, the Group recorded profit before tax of RM68.40 million and profit after tax of RM50.78 million in FY2024 against profit before tax of RM13.06 million and profit after tax of RM6.88 million in FY2023. 021 ANNUAL REPORT 2024
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