My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 13 MANAGEMENT DISCUSSION AND ANALYSIS (CONT’D) DIVIDEND PAYOUT TO SHAREHOLDERS On 29 March 2019, the Board declared a final single tier dividend of 1.4 sen per ordinary share amounting to RM48.78 NJMMJPO GPS '1 5IF TBJE EJWJEFOE XBT QBJE PO +VOF On 30 May 2019, the Board declared a first interim single tier dividend of 0.5 sen per ordinary share amounting to RM17.421 million for FP2019. The said dividend was paid on 23 August 2019. Given the Company’s positive financial performance, the Board has declared a final dividend for the financial period of 2.0 sen, subject to shareholders’ approval at our forthcoming annual general meeting (“ AGM ”) to be held on 6 August 2020. Total dividend declared for FP2019 is expected to be 2.5 sen per ordinary share, representing a payout ratio of approximately 30%. CAPITAL AND OPERATIONAL EXPENDITURE In driving sustainable growth in Malaysia and abroad, the Group has continued to invest strategically and judiciously, with a view to the future. In FP2019, Group CAPEX was RM69.87 million (FP2018: RM48.54 million). Meanwhile, Group operating expenditure (“ OPEX ”) was RM254.40 million (FP2018: RM227.12 million). The increased expenditures reflect the growing scale of MYEG’s business activities, in terms of transaction volumes for existing services as well as expansion into new business opportunities. CAPEX OPEX IT hardware comprising servers and computers Buildings and related works Personnel related expenses and operating expenses; Advertising and promotion expenses; Maintenance and operating expenses for MYEG Tower Interest expense arising from the term loan to finance the acquisition of MYEG Tower; Depreciation and amortisation charges ASSETS AND LIABILITIES, CASH AND BANK BORROWINGS The Group’s asset position remains healthy, with total assets of RM1.03 billion as at 31 December 2019 (FP2018: RM884.25 million) on the back of higher current and non-current assets. As at 31 December 2019, MYEG’s cash and cash equivalents stood at RM63.86 million (FP2018: RM100.24 million). The decline from the end of the previous financial period mirrors the increased deployment of funds during the financial period towards various strategic investments and initiatives aimed at generating higher returns and spurring the continued growth of the business. Reflecting the continued robust underlying business activity in FP2019, the Group recorded operating cash flow of RM168.04 million (FP2018:RM177.25 million) in FP2019 while net cash from operating activities was at RM161.73 million (FP2018: RM176.75 million). MYEG has sufficient cash to meet working capital requirements. PERFORMANCE