Extracted from Annual Report 2018
Dear Valued Shareholders,
I am pleased to present on behalf of the Board of Directors the Annual Report and Audited Financial Statements of Freight Management Holdings Bhd (“FMHB” or “the Group”) for the financial year ended 30 June 2018 (“FY2018”).
FMHB achieved mixed results during an interesting year in which growing demand was tempered by rising costs against the backdrop of an economic cold war between major trading nations and economic blocs. On the one hand, the Group capitalised on increasing demand to register healthy growth in Revenue. On the other, we achieved lower margins due to rising costs and other factors, leading to a moderate decline in profits.
The Group reached a new milestone in recording Revenue of RM511.6 million in FY2018, representing a growth of 10.9% over RM461.2 million the year before (“FY2017”). However, the Group posted a lower Profit Before Tax (“PBT”) of RM28.4 million compared with RM28.9 million in FY2017 (-1.7%) and a lower Profit After Tax and Minority Interests (“PATMI”) of RM19.7 million against RM21.0 million in the previous financial year (-6.3%).
Earnings Per Share (“EPS”) was 10.58 sen in FY2018, compared with 11.50 sen the year before. Nevertheless, the Group sustained growth in Shareholders’ Funds and Total Assets to close the year in a stronger financial position. Shareholders’ Funds grew by 16.8% to RM288.5 million during the year in review (FY2017: RM247.0 million) while Total Assets amounted to RM455.3 million with Net Assets Per Share reaching RM1.55 as at end FY2018, an increase of 16.5% from the previous financial year (FY2017: RM1.33). A more detailed review of FMHB’s financial and operational performance is provided in the Management Discussion and Analysis in this Annual Report.
I am pleased to announce that the Board of Directors has declared another year of dividends to reward the support and loyalty of our shareholders. We declared two interim single-tier dividends amounting to 5 sen per share in FY2018, with an interim dividend of 1.5 sen per share paid out in July 2018 and a second interim of 3.5 sen per share to be paid out in November 2018. The total dividend payout of RM9.3 million for FY2018 is the highest at 47% of the Group’s PATMI. It will also be our 14th consecutive year of dividend payments.
Looking ahead, the Group will remain vigilant over the global market uncertainties, rising oil prices and currency pressure precipitated by the developing trade tension between the United States and China. Our focus going forward will be on strengthening our customer base and further improving efficiency in order to offset rising costs. At the same time, FMHB will continue to grow demand for our businesses while accelerating the development of infrastructure for eFulfillment and last mile delivery to capitalise on new opportunities in eCommerce.
On behalf of the Board of Directors, let me take this opportunity to express appreciation to our esteemed shareholders for your trust in FMHB. Your confidence and cooperation plays an important part of our decision-making and assuredness in taking the Group forward.
I would also like to thank all other stakeholders including our customers, partners and associates for your loyalty and collaboration in years past and years to come. Last but not least, I hereby thank and acknowledge the unstinting commitment and contributions of our management team and staff. As always, your hard work defines the future of this Group.