ANNUAL REPORT 2025 OUR PERSPECTIVE 38 FINANCIAL REVIEW (CONT’D) Return on Equity (“ROE”) and Return on Assets (“ROA”) Reflecting the Group’s enhanced profitability and capital discipline, ROE improved to 25.9%, up from 25.1% in the preceding year. Similarly, ROA rose to 20.8%, compared to 19.7% previously. These improvements underscore the Group’s ability to generate strong returns on both shareholder capital and total asset base, even as we reinvest into new technologies and growth platforms. Capital Structure and Capital Resources As at 31 March 2025, the Group reported total assets of RM555.1 million, up from RM468.3 million the year before. Shareholders’ equity increased to RM447.4 million, supported by strong retained earnings, a stable capital base, and new equity raised during the year. The Company increased its issued and paidup share capital through the issuance of 2,800 new ordinary shares from the exercise of warrants at an exercise price of RM0.2117 per share, and 9,113,300 new ordinary shares from the exercise of options under the Employee Share Option Scheme at an exercise price of RM0.446 per share. The newly issued ordinary shares rank pari passu in all respects with the existing ordinary shares of the Company. The Group continued to maintain a conservative balance sheet position while delivering record profits. Net Gearing, Cash per Share and Liquidity Position The Group closed the financial year in a strong liquidity position, remaining in a net cash status. Total cash and cash equivalents stood at RM75.9 million, a substantial increase from the previous financial year. This translated into cash per share of RM0.0255, further demonstrating the Group’s cash-generative capability and prudent working capital practices. Net gearing remained negligible, giving the Group substantial financial flexibility to pursue acquisitions, scale up digital infrastructure projects, or co-invest in future consortium-based initiatives without placing strain on its capital structure. Net Operating Cash Flow (“NOCF”) Net operating cash flow for the year amounted to RM96.6 million, representing a 67.3% increase from RM57.7 million in FY2024. This was underpinned by improved profitability, timely collection from public sector clients and structured milestone billings for new projects. Dividend Since 31 March 2024, NexG Berhad has distributed total dividends of RM57.2 million comprising a fourth interim single-tier dividend of 1.30 sen per share with a total of RM36.3 million paid on 2 July 2024 for FY2024, and a first interim single-tier dividend of 0.75 sen per share valued at RM20.9 million paid on 27 September 2024. Management Discussion And Analysis (Cont’d) TOTAL ASSETS RM555.1million NET CASH POSITION WITH TOTAL EQUITY NET ASSET 2.55sen Per Share RM447.4million RM15.3sen Per Share BALANCE SHEET HIGHLIGHTS AS AT 31 MARCH 2025 FY2025 RETURN ON ASSETS FY2025 TOTAL DIVIDENDS PAID FY2025 RETURN ON EQUITY 20.8% RM57.2million 25.9%
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