On behalf of the Board of Directors, I am pleased to present the Annual Report and Financial Statements of Ireka Corporation Berhad (the "Group") for the financial year ended 31 March 2012.
For the financial year under review, the Group recorded a revenue of RM429.89 million as compared to RM443.95 million recorded in the previous year which reflects lower volume of construction work completed locally and in Vietnam. Operating profit was RM14.58 million and after allowing for higher finance cost and improved contribution from share of profit and dividend from associate, Aseana Properties Limited ("Aseana Properties"), profit before tax was RM14.12 million compared to a loss of RM11.09 million for the previous year.
The Directors have recommended a single-tier dividend of 5% in respect of the financial year ended
The Group continued to work closely with its associate, Aseana Properties, in implementing property development projects in Malaysia and Vietnam. One of the projects which has been successfully completed is the Sandakan Harbour Square project which includes Harbour Mall and the Four Points by Sheraton Sandakan Hotel. In Vietnam, the construction of the City International Hospital at the International Hi-Tech Healthcare Park in Ho Chi Minh City is in progress. In Malaysia, the hotel suites and serviced residences project in Kia Peng @ KLCC has received development order approval and construction works will start in the last quarter of the year.
On the construction front, the Group has RM425.81 million remaining in its order book. The Group was awarded a RM268.60 million contract for the construction of a high-rise serviced apartment and office project (the Imperia Puteri Harbour) at Puteri Harbour in Nusajaya, Iskandar Johor. On property development, the Group is currently working on four projects, two of which will commence during the second half of the current year.
The Group's IT business under i-Tech Network Solutions Sdn Bhd ("i-Tech") continued its expansion through i-Tech's 'green' data centre which offers disaster recovery and co-location services which is now in the second phase of construction. The data centre branded as SAFEHOUSE is now listed in the Multimedia Development Corporation directory distributed and marketed worldwide. As a start, the data centre is already proving its usefulness to the Group's various business divisions. iTech ELV Solutions Sdn Bhd ("iTech ELV ") performed well in its structured cabling, audio visual and building automation systems, CCTV and security access control.
Prospects for the current year are satisfactory. The Group has sufficient work in hand for the current year both from the construction and property development work coming on stream. The Group will continue to bid for public and private sector projects in the country as well as work with the Group's associate, Aseana Properties, in Vietnam.
In closing and on behalf of the Board of Directors of Ireka Corporation Berhad, I wish to convey my sincere thanks to all shareholders, customers, business partners and Aseana Properties for their continuing support.
To my colleagues on the Board, I would like to express my gratitude for their contributions and guidance during the year. I would also like to take this opportunity to express the Board's appreciation to the late Mr Lim Che Wan for his contribution to the Group. Lastly, I take this opportunity to thank the management and staff at all levels for their support and contributions during the year.
Haji IR. Abdullah Bin Yusof