Extracted from Annual Report 2017
Dear Valued Shareholders,
On behalf of the Board of Directors of Freight Management Holdings Bhd (“FMHB” or “the Group”), I am pleased to present to you our Annual Report and the Audited Financial Statements of the Group for the financial year ended 30 June 2017 (“FY2017”).
After a prolonged period of uncertainty, it is indeed encouraging to note that the global economy is finally on a cyclical recovery path in 2017, with expectations of sustained growth going into 2018. Reflecting this, the International Monetary Fund expects world output growth of 3.5% in 2017 and 3.6% in 2018. Back in Malaysia, the economic outlook has also brightened, with Bank Negara Malaysia expecting gross domestic product growth of more than 4.8% in 2017.
In tandem with the better performance of the global economy, world trade activity has also increased, and our Group has taken advantage of the situation with intensified efforts to grow our core freight businesses and strengthen our service offerings and quality. As a result of these efforts, I am glad to announce that the Group’s revenue for FY2017 increased by 11.5% year-on-year to RM461.2 million, on the back of double-digit growth in volume. Group profit before tax for FY2017 rose to RM28.9 million in FY2017, as compared to RM24.8 million in FY2016. As at 30 June 2017, the Group’s financial position remained healthy with net assets of RM263.0 million. There is a more detailed analysis of the Group’s performance in the Management Discussion and Analysis section of this Annual Report.
Outlook And Future Prospects
We expect the more favourable economic outlook in 2018 to positively impact our performance in FY2018. We will strive for continued growth in our core businesses and at the same time explore new business opportunities and develop new products, such as last-mile delivery services. The Group will also focus on further strengthening our customer base and improving our operational and cost efficiency.
In view of the satisfactory performance in FY2017, we have declared two interim single-tier dividends totaling of 5 sen per share in FY2017. This represents a payout ratio of 43% of our FY2017 net profit. The dividend payments in FY2017 marked the 13th consecutive year that FMHB has rewarded its shareholders with dividends, and we will strive to maintain this impressive track record going forward.
Appreciatioon And Acknowledgement
On behalf of the Board, I would like to thank my fellow Board members, our management team and staff for their commitment, loyalty and dedication to the Company. Our growth and future success will always be due to the combined efforts and teamwork from all of us. Furthermore, I would like to express our appreciation to our outgoing auditors, Messrs BDO whom are not seeking for re-appointment, for their services and support provided over the years.
Lastly, I would like to express our sincere appreciation to all our business partners, financiers, vendors, customers and shareholders for your unwavering support over the years and I look forward to meeting all our valued shareholders at our forthcoming Annual General Meeting.