(Extracted from Annual Report 2017)
On behalf of KKB's Board, I would like to record my heartfelt appreciation to our Management Team and all the staff for their hard work in delivering the commendable operating performance and financial results for the financial year ended 31 December 2017 as set out in this Annual Report.
It is encouraging to see that the Group delivers satisfactory performance this year, despite continued uncertainty of the global economy, rising raw material cost and volatile foreign currency exchange rates.
The Group saw an improvement in its revenue and profit after tax. Revenue increased by 103.0%, from RM103.1 million in the preceding year to RM209.3 million recorded in the current year. Profit after tax of RM3.3 million increased year on year by 157.9%, against a loss of RM5.7 million recorded in the preceding year.
We remained focused and our Board is confident that the KKB Group will meet its ambitious goals, generating sustainable growth across all our operating divisions, which in turn should drive Shareholders returns. The Board remains supportive and will continue to oversee management’s performance closely, ensuring that the Group executes its strategy with financial discipline and with integrity
We have expanded our presence in the Oil and Gas fabrication and continue our efforts to strengthen and grow our core business in both the engineering and manufacturing activities based on strong fundamentals to optimize our operations towards a sustainable growth.
The fall in crude oil prices has inevitably impacted us which has resulted in the slowdown of both the upstream and downstream industry players.
To deal with the challenges, various cost-cutting strategies were put into play to ensure that resources were efficiently utilized. All capital commitments will continue to be made in a disciplined manner and will remain subject to rigorous strategic and financial hurdles.
The Board continues to monitor the Group's performance in important areas such as compliance, risk management and sustainability.
Sustainability is an integral part of our business model and our goal is to consistently and actively foster sustainable development and increase positive impact in all relevant areas of our business framework.
The Group's long standing track records, sound and prudent Management along with its strong financial and cash position with low gearings will no doubt allow the Group to reposition itself well and continue to identify viable new business opportunities to strengthen the Group in years to come. We continue to look at technology and talent to support and expand our core business in Structural Steel Fabrication engineering for the Oil and Gas Sectors to complement our traditional engineering and manufacturing business activities.
I would like to express my sincere appreciation to our Board, for their invaluable guidance and contribution. Also, on behalf of the Board, I would like to express my utmost and sincere gratitude to our hardworking management team and staff for their commitment and dedication to the Group and their tenacity during these challenging times. I would also like to thank our shareholders for your loyal support and confidence in KKB.
We remain committed to enhancing value for our shareholders and believe it is prudent to conserve our resources. We look forward to your continuing support as we sail through challenging times while seeking new business opportunities to drive the business further.
Last but not least, I would like to thank our customers, suppliers, bankers, business associates, advisers and relevant authorities whom we have been dealing with over the years for their continuous support and confidence in our Group.
Thank you.DATO KHO KAK BENG