GPERAK-AnnualReport2009 (1MB).pdf - Bursa Malaysia

CHAIRMAN’S STATEMENT
annual report 2009 | Gula peraK BerHaD (8104-X)
On behalf of the Board of Directors, I hereby present to you the 40 th Annual Report and Audited Financial Statements of Gula
Perak Berhad (“GPB” or “the Group”) for the financial year ended 31 March 2009.
OvERvIEW
The Group continued to face increasingly competitive pressure in the hotel and property development sectors for the year
under review. During the financial year, the global economy saw unprecedented turbulence marked with credit crisis in the
financial markets and recessionary conditions in the economies of many countries. Inflationary pressure on the costs despite the
fall in world oil prices is more confined to the cost of doing business and does not translate to higher growth in revenue. In the
light of the falling global economy, international travel suffered a sharp downturn and the lower tourist arrivals impacted hotel
businesses in Malaysia.
PERFORMANCE REvIEw
The Group registered a loss before tax of RM134.186 million for the year under review compared to a loss before tax of
RM16.414 million in the previous financial year. A total of RM146.622 million arose from write-downs of cost of development
properties, write-downs in the fair value of investment properties and impairment loss on hotel property attributed to the higher
loss before tax for the current year under review.
The Group’s total revenue for the financial year decreased to RM35.546 million from RM39.407 million in the previous financial year
with the hotel division contributing 100% of the revenue as there was no revenue from the property development division.
OPERATIONS REvIEw
HO T E L DIvISION
Amidst the bleak outlook of the global economy, lower tourist arrivals and a challenging operating environment, the management
maintained an aggressive marketing drive to uphold a reasonable performance by generating a revenue of RM35.546 million,
down marginally by RM898,000. The Hotel Division expects to continue its focus on continually reducing our cost base without
compromising on the quality and services to our customers and guests by enhancing on its competitiveness, productivity and
overall operational efficiencies. The Hotel Division will continue to integrate its marketing strategies with the Government’s
tourism initiatives to drive higher tourist arrivals and further improve on the hotels’ occupancy rates.
PL A N TAT I O N DIvISION
The Plantation Division recorded an even higher profit before tax of RM29.946 million against RM13.22 million in the previous
financial year, attributable mainly to the recognition of the gain on disposal of the Bernam Oil Palm Estate of RM23.233 million
which was concluded during the current financial year.
As announced in the financial year ended 31 March 2007, the Group has classified the Plantation Division as discontinued
operations due to the sale of the plantation assets for the purpose of redeeming the RM90.124 million 3% Redeemable Secured
Bonds 2000/2005. As the sale of the Sitiawan Oil Palm Estate was not completed prior to the financial year end, the performance
of the Plantation Division has been taken into account in this financial year.
PR O P E RT Y DE v E L O P M E N T DIvISION
It continues to be a quiet year for the Property Development Division. The Group has written down some of the costs of
property development projects amounting to RM27.917 million.
There were no new launches in the current financial year due to slow demand as well as shrinking margins in a highly competitive
market. The Group will continue to focus on sales of completed properties to reduce overhangs in the supplies of industrial,
commercial as well as office and retail space.
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