KUALA LUMPUR: ACE Market-listed Ancom Logistics Bhd expects to maintain its performance despite market uncertainties and is looking at expanding its fleet size cum carrying capacity to continue delivering growth in the coming years, its top officials said.
“Despite the difficult economic climate, we believe we can still be consistent [with our performance],” CEO and executive director Larry Lim told reporters after the company AGM yesterday. To remain competitive, Ancom Logistics has to continue deploying resources for expansion, he added.
Already, the company is seeing benefits from its capacity expansion last year, its CFO Lee Cheun Wei added.
“Last year, we expanded the logistics business by expanding our tank farm by 11,000 cubic metres to extend its capacity, and this will definitely bring positive results as we move forward,” Lee told The Edge Financial Daily.
“We have also increased our vehicle fleet size to cope with rising demand from the market, this shows that the business is gearing for growth. Hence the board and management feel that the results going forward will definitely be more encouraging,” he said.
Notably, Ancom Logistics was freed of its Guidance Note 3 (GN3) status in January after completing a restructuring exercise that included the acquisition of the logistics business from its holding company, Ancom Bhd.
Ancom Logistics disposed of subsidiaries involved in the trading and contracting of electrical engineering products on Jan 31 this year to better focus on the company’s current core logistics business which have been profitable, Lee said.
For the first quarter ended Aug 31, Ancom Logistics saw profit attributed to shareholders rise about 60% to RM1.03 million from RM643,000 the year before while its operating revenue increased marginally to RM15.8 million from RM15.2 million. However, revenue fell from RM16.4 million in the preceding quarter while pre-tax profit remained flat at RM1.8 million as demand slowed slightly on seasonal fluctuations, the company said in notes to its accounts.
For FY ended May 31, the group’s net profit from continuing operations of RM14.95 million was significantly higher year-on-year from RM3.1 million before, helped by a RM11 million gain on disposal of a property to Ancom.
Ancom Logistics will distribute a final single-tier dividend of two sen per share for FY11, bringing total payout for the year to four sen per share or about RM19 million.
Ancom Logistics yesterday closed at 17 sen, giving the company a market value of RM82.83 million. The stock has gained some 70% from 10 sen in September.
This article appeared in The Edge Financial Daily, November 24, 2011.
“Despite the difficult economic climate, we believe we can still be consistent [with our performance],” CEO and executive director Larry Lim told reporters after the company AGM yesterday. To remain competitive, Ancom Logistics has to continue deploying resources for expansion, he added.
Already, the company is seeing benefits from its capacity expansion last year, its CFO Lee Cheun Wei added.
“Last year, we expanded the logistics business by expanding our tank farm by 11,000 cubic metres to extend its capacity, and this will definitely bring positive results as we move forward,” Lee told The Edge Financial Daily.
“We have also increased our vehicle fleet size to cope with rising demand from the market, this shows that the business is gearing for growth. Hence the board and management feel that the results going forward will definitely be more encouraging,” he said.
Notably, Ancom Logistics was freed of its Guidance Note 3 (GN3) status in January after completing a restructuring exercise that included the acquisition of the logistics business from its holding company, Ancom Bhd.
Ancom Logistics disposed of subsidiaries involved in the trading and contracting of electrical engineering products on Jan 31 this year to better focus on the company’s current core logistics business which have been profitable, Lee said.
For the first quarter ended Aug 31, Ancom Logistics saw profit attributed to shareholders rise about 60% to RM1.03 million from RM643,000 the year before while its operating revenue increased marginally to RM15.8 million from RM15.2 million. However, revenue fell from RM16.4 million in the preceding quarter while pre-tax profit remained flat at RM1.8 million as demand slowed slightly on seasonal fluctuations, the company said in notes to its accounts.
For FY ended May 31, the group’s net profit from continuing operations of RM14.95 million was significantly higher year-on-year from RM3.1 million before, helped by a RM11 million gain on disposal of a property to Ancom.
Ancom Logistics will distribute a final single-tier dividend of two sen per share for FY11, bringing total payout for the year to four sen per share or about RM19 million.
Ancom Logistics yesterday closed at 17 sen, giving the company a market value of RM82.83 million. The stock has gained some 70% from 10 sen in September.
This article appeared in The Edge Financial Daily, November 24, 2011.
