AWC subsidiary in JV for Saudi Arabia waste collection system

KUALA LUMPUR (Jan 6): AWC Bhd’s subsidiary is partnering with the Dallah Group Company to undertake automated waste collection system projects in Saudi Arabia.

AWC said on Friday its 51% owned Nexaldes Sdn Bhd had signed a shareholders’ agreement with Dallah on Dec 21 to set up a joint venture (JV) company.

It added Nexdales’ unit Stream Environment Sdn Bhd would undertake the projects in Saudi Arabia, which was one of the best performing fastest growing emerging markets in the world.

AWC added the JV company’s initial paid-up would be 2.0 million Saudi riyals (RM1.67 million) where Dallah would have a 75% stake and Stream 25%.

AWC said Stream’s 25% stake, comprising of 500,000 riyals, in the JV company would be funded through its own funds.



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AWC pre-tax profit falls to RM13.8m

AWC Bhd's pre-tax profit for financial year ended June 30, 2011 fell to RM13.8 million from RM22.1 million in the same
period of 2010. Revenue declined to RM153.90 million from RM184.8 million previously, it said in a statement today.

Its group chief executive/managing director, Azmir Merican, said the results were satisfactory amid the challenges and uncertainties in the global political and economic landscapes during the period under review.

"We achieved our profitability targets despite lower revenue for the year," he said. He said all divisions remained profitable except the technology division which suffered a pre-tax loss of RM3 million.

"The impact of the adverse performance was somewhat moderated by the stronger performance of our facilities division, which achieved a pre-tax profit of RM6.5 million," he said.

Going forward, Azmir said, the group's immediate task was to strengthen the resilience of project-based income and the development of a healthy order book.

"Several key steps have been undertaken to address those issues, which included outlining a more structured and focused sales and marketing effort and the beefing up of the organisational infrastructure to meet the more demanding operating environment," he said.

Azmir said the company has identified four aims to guide the actions in the future. "They are: ensuring continued favorable results via the development of our business model; emphasise innovation at the core of what the company does; ensuring a more sustainable growth via the reduction of energy and natural resources consumption; and, harnessing of human talent and skills development," he said. -- Bernama



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