Chairman Statement

In FY’18 the Group recorded higher revenue across all its major business units, culminating in a 16% or RM7.72 million increase in total revenue to RM55.20 million for FY’18 (FY’17: RM47.48 million). Revenue at paper products and plastic products increased by 26% (RM7.37million) and 6% (RM0.93 million) respectively, mainly due to additional orders from the existing customers and new customers resulted by competitive pricing and improved products quality measures taken by the Group.

The increased revenue in the paper segment and plastic segments were mitigated by the drop in colour separation and printing segment revenue, which shrank by 34% (RM0.68million) due to losing of major customers in the annual report business to our competitor.

The Group registered a loss before taxation of RM5.69 million in FY’18, compared to the FY’17 profit before taxation of RM0.73 million.

The significant drop was mainly due to the reduction in profits resulted by outsourced printing jobs to outsourced printers to cope with increased sales orders and increase in impairment of receivable due to uncollected debts.

The segment profit before taxation was decreased to RM0.99million in FY’18 as compared to RM3.59 million in FY’17. The unfavorable result was mainly due to increase in cost incurred to outsourced printers to cope with increased sales orders. Another main reason resulting in the drop of profit was due to the increase in administrative expenses.

In FY’18, the segment suffered a RM5.58 million loss before taxation as compared to RM0.96 loss before taxation in FY’17. The increase in loss was mainly due to the major repair works required for the machines and moulds which subsequently affecting the gross margin of the division. Another main reason for the additional loss before taxation was due to the increase in administrative expenses which arising from the increase in impairment of trade debtors.

The segment registered a loss before taxation of RM0.54 million in FY’18, compared against the FY’17 loss before taxation of RM0.30 million. The increase in loss of RM0.24 million was due to the loss of major customers in the annual report business to our competitors mitigated by cost saving measures implemented by the management.

On behalf of the Board, I would like to express our appreciation to TEAM VERSATILE (comprising all the Directors, Management and Staff) for their contribution, support and commitment, dedication and loyalty for the turnaround in FY’18. We look forward to TEAM VERSATILE contributing to the Group’s growth and further success in the coming years.

I also would like to extend my sincere appreciation and gratitude to our shareholders, valued customers, suppliers and financiers for their continued support and confidence in the Group.

Dato’ Lee Kwee Hiang
Executive Chairman
7 September 2018