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Meanwhile, NSTP returned to the black with a
net profit of RM349.3 million for the financial
year ended 31 August 2002, against a net loss
of RM141.8 million previously. NSTP’s revenue
increased by 13% to RM768.7 million from
RM680.2 million in the previous financial year.
This increase was largely due to initiatives
taken by the management of NSTP in product
improvements and penetrating new markets,
resulting in higher circulation revenue,
reduction in overall costs and better results
from the insurance division.
The positive turnaround was further boosted by
a gain of RM387.7 million from the disposal of
146.9 million shares in Commerce Asset
Holding Berhad (CAHB) as well as a RM20.5
million gain from the disposal of subsidiary
Idab Wamac International AB.
With lower borrowing costs following the
completion of the disposal of CAHB shares,
improving readership as a result of product
enhancements and continuous cost-efficiency
measures, NSTP is expected to post better
operational results in the next financial year.
To achieve this goal, NSTP is now
concentrating on its core business of
newspaper publishing, while TV3 focuses on
commercial television broadcasting.
During the financial year under review, MRCB
had also closed down a number of non-viable
businesses, mainly related to its previous
expansion into multimedia and IT activities.
TV3 has also taken the necessary measures to
dispose of or close down non-viable operations
such as Cableview Services Sdn Bhd, the
operator of MegaTV.
To achieve and increase operational
efficiencies, MRCB also embarked upon an
aggressive cost rationalisation exercise by
streamlining its organisation and reducing
overhead costs. MRCB corporate administrative
expenses have been reduced by 20% and will
be further rationalised in the coming financial
year.
REJUVENATE
With the proposed demerger of the media
units, MRCB will focus on its core strengths in
the construction, engineering and property
sectors. This strategy focuses on securing new
contracts and completing existing projects
profitably and on time to enhance future
profitability and growth.
This process has already begun to bear fruit.
During the financial year under review, a
consortium comprising Transmission Technology
Sdn Bhd (a subsidiary of MRCB) and Sharikat
Permodalan Kebangsaan Berhad successfully
secured the Sabah East-West Grid
Interconnection contract worth RM400 million.
In addition, MRCB has secured letters of intent
from the Government for several large
engineering and construction projects expected
to be awarded in the coming financial year.
Further testimony to our firm commitment
comes in the form of the timely completion
and delivery of new projects over the last
financial year. During the financial year under
review, we continued to expand the success of
our landmark 72-acre Kuala Lumpur Sentral
development, when proud owners collected
their keys to the 400-unit Suasana Sentral
luxury condominiums.
Development work continues on office
buildings and hotels within the project, with
the launch of four remaining blocks of the
Plaza Sentral commercial area in the pipeline.
When completed, Kuala Lumpur Sentral will
provide the City with an ultra-modern
transportation hub with integrated commercial
and residential facilities.
In addition, MRCB also successfully completed
the construction of the RM200 million Labuan
Matriculation College, a sprawling campus that
can accommodate up to 3,000 students. The
quality of this project and its successful delivery
on schedule has received recognition from the
client-government agency.
To further revitalise the MRCB Group, initiatives
such as the Employee Share Option Scheme
and Key Performance Indicators have been
introduced to inculcate a profit-oriented culture
in the organisation, and better align employee
interests with that of the shareholders.
MOVING FORWARD
In light of the affirmative measures undertaken
and positive indicators in the overall economy,
we look forward to the coming financial year’s
challenges. The achievement of important
milestones in the previous financial year
promises further progress towards a stronger
MRCB even as we continue to build on the firm
foundations put in place this past financial year.
With the demerger of the media assets, MRCB
will emerge as an engineering and construction
company with a strong focus on the energy,
infrastructure and property sectors. We are
increasingly well placed to capitalise on the
Government’s expansionary policies and we aim
to leverage on our traditional strengths in the
design and construction of turnkey civil
projects, power plants and transmission lines to
increase market share.
Laporan Tahunan 2002 Annual Report
LETTER FROM THE CHAIRMAN (CONTINUED)
61