GEARING RATIO Capitalising on the current low interest rate, the Group has refinanced a portion of its existing debt with longer repayment tenures and lower interest rates. Additionally, the Group has also utilised excess cash to effect early payment on its debt obligations in FY2024. This has enabled gross borrowings to stand at RM145.4 million, a reduction in gross borrowings of 39.6% over RM240.6 million in FY2023. On this basis, the Group is currently in a net cash position as at 31 March 2024 highlighting the prudent approach that has enabled the progressive execution of the Group’s strategic objectives of value creation. CASH FLOW, CASH AND BANK BALANCES Matrix adopts a measured approach in ensuring sufficient cash to meet its working capital requirements going forward. With this approach, cash position will be supported by continued revenue recognition from the property development unit and the Group’s unbilled sales. Matrix’s cash position has recorded an improvement in FY2024, with cash and cash equivalents at end of the year registering RM328.3 million, reflecting a 64.0% year-on-year improvement. With a net cash position, the Group will continue to be bolstered by strong revenue recognition from property development activities and unbilled sales. CORPORATE EXERCISES In keeping with its strategic focus on township development and premium affordable homes, on 14 November 2023, Matrix secured a RM512 million financing facility from AMMB Holdings Bhd (AmBank Group) to facilitate the development of 1,382 acres of prime housing in the MVV located in Sendayan, Negeri Sembilan. The project, which has a gross development value of RM7 billion, will be developed through an 85:15 joint venture between Matrix Concepts’ indirect subsidiary MHCB Development (NS) Sdn Bhd and NS Corporation, called N9 Matrix Development Sdn Bhd. It will feature a mix of residential, commercial and retail elements. LANDBANK As at 31 March 2024, Matrix’s total landbank was 2,032 acres, giving a total GDV of RM11.7 billion. This built-up landbank comprises mainly of land at the Group’s Sendayan Developments and BSI townships, with various other land parcels at strategic areas within the Klang Valley. The recent acquisition of the 1,382-acre MVV land is excluded as the transaction has yet to be fully concluded. The Group’s development plans for such landbank would be announced once it has been finalised. INDICATOR FY2024 (RM’000) FY2023 (RM’000) Difference (%) Net cash from operating activities 331,014 211,327 56.6 Net cash (used)/ generated from investing activities (2,856) 19,347 (114.8) Net cash used in financing activities (209,625) (170,967) 22.6 Net changes in cash and cash equivalents 118,533 59,707 98.5 Effect of exchange rate fluctuations on cash held 9,624 (9,867) (197.5) Cash and cash equivalents at beginning of the year 200,128 150,288 33.2 Cash and cash equivalents at the end of the year 328,285 200,128 64.0 MANAGEMENT DISCUSSION & ANALYSIS KEY MESSAGES 45 INTEGRATED ANNUAL REPORT 2024
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