on behalf of the Board of Directors of Metronic Global Berhad (“Metronic” or “the Company”), it is my pleasure to present the Annual Report and Audited Financial statements for the financial year ended 30 June 2018.
The Malaysian economy recorded a sterling growth of about 5.7% in 2017 underpinned by strong domestic demand and reinforced by external sectors. The construction sector, whereby the Group is involved, continues to register a robust growth of 7.4% despite slow-down of activities experienced in late 2017 and early 2018.
OPERATING ENVIRONMENT OVERVIEW
The year 2017 and early 2018 was a challenging period for the Group due to slow down in the construction industries with project owners and contractors delaying their launches and awards due to the unfavorable economic conditions and the then impending General Election in May 2018. The situation has directly affected the Group’s performance to replenish its order book with less new contracts being secured while the on-going works experienced a slow-down.
In the year 2017, the Group has marked a significant achievement with the successful and timely completion of its MRT Line 1 project known as “Project Mass Rapid Transit Sungai Buloh – Kajang Line” with a contract sum of RM42.9 million. The project has obtained a Certificate of Practical Completion in July 2017.
The Group, based on the its performance to meet all the scheduled timelines supported by its vast experience, technical resources, financial strength and expertise in handling the MRT Line 1 project, has been awarded another infrastructure- related contract of RM50 million from Mass Rapid Transit Corporation Sdn Bhd (“MRT Corp”). The Group’s wholly owned subsidiary, MESB, was appointed as a primary contractor for the Design, Supply, Installation, Testing and Commissioning of Building Management System for Underground Works of Projek Mass Rapid Transit Laluan 2 Sungai Buloh – Serdang Putrajaya (SSP).
The Group, as part of the initiatives to improve its financial strength, undertook series of corporate exercises which included a private placement and Employees’ Shares Option Scheme (ESOS) that have raised a total proceed of RM14.2 million during the period under review.
The successful implementation of these exercises has proved our stakeholders’ supports and confidence towards the future and prospect of the Group.
During the period under review, the Group has also disposed a property that has been vacant since 2014. This disposal enabled the Company to monetize the underutilized asset whereby the proceeds were utilised towards improving the Company’s working capital position.
The outlook for the construction sector remains positive with the construction industry is anticipated to grow at 8%. This will be driven by the many on-going and planned infrastructure projects, helping to support a projected overall economic growth rate of 4.7-5.3% in 2018. The Group is likely to benefit from the pipeline of mega developments such as the LRT3 and Merdeka 118 which are among the RM150 million contracts underbidding that are yet to be awarded.
The Group is optimistic that our proven and reliable track record in rail and other mega projects will position us well to bid for these important and demanding projects.
For the coming year, to sustain growth and extend our competitive position, the Group will leverage on further innovation, application of technology and talent development. In doing so, we continue to pursue on the research and development and deploy all available resources to replenish and enlarge our order book, strengthen our market position and ensure more efficient delivery of our projects.
APPRECIATION AND ACKNOWLEDGEMENT
Over the past eighteen months, the Group experienced round of changes at the Board of Directors. In August 2017, my predecessor, Mr. Patrick Chin Hau Yui has left the Group followed by Mr Ric Koh Wai Chee in May 2018.
Their departures were however being succeeded by my-self who was appointed in November 2017 and later followed by Mr. Hoo Wai Keong and Mr. Muhammad Faliq bin Mohd Redzuan in July 2018 and September 2018 respectively.
On behalf of the Board, I would like to extend my sincere appreciation to Mr. Patrick Chin Hau Yui and Mr Ric Koh Wai Chee for their valuable contributions. Whilst we would like to express our most welcome to Mr. Hoo Wai Keong and Mr. Muhammad Faliq bin Mohd Redzuan which we strongly believe that your inputs and supports would be very useful and incremental towards bringing the Group into better footing.
On behalf of the Board, I would also like to thank the Group’s management members, shareholders, customers, suppliers, business associates, bankers and other stakeholders for their continued support. The appreciation also goes to our employees for their continued dedication and commitment. We look forward to better performance in 2018 and ahead.
On behalf of the Board
Dato’ Zaidi bin Mat isa @ Hashim
No. 2, Jalan Astaka U8/83, Seksyen U8, Bukit Jelutong 40150 Shah Alam, Selangor