SKP on track to profit target


  • Business
  • Wednesday, 08 Jan 2003

By SABRY TAHIR

KLSE second board candidate SKP Resources Bhd is on track to achieve RM12.1mil in pre-tax profit for the year ending March 31, 2003. 

This expectation was based on the company's financial performance over the last nine months, SKP executive director Gan Poh San said at a media briefing in conjunction with the launch of its prospectus in Kuala Lumpur yesterday. 

“We are indeed very confident of meeting the target,'' he said, adding that SKP, a plastic injection moulded components maker, had forecast the pre-tax profit on the back of RM70.12mil in revenue. 

Gan Poh San (left) and SKP MD Datuk Gan Kim Huat at the launch of the company prospectus.

Gan said the company had been registering steady growth in revenue even during the economic downturn. 

For the financial year ended March 31, 2002, and the four months ended July 31, 2002, products sold to the electronics and electrical products industry contributed 67% and 66%, respectively, to group revenue. 

In conjunction with its proposed listing, the group is making a public issue of 7.2 million new shares of RM1 each at an issue price of RM1.50 per share. Of the 7.2 million shares, 1.5 million would be made available to the public, 2.4 million to the group's eligible employees and 3.3 million for private placement.  

Gan said the bulk of the RM10.8mil to be raised from the initial public offering (IPO) would be for new machinery and future plant expansion, with the balance going towards software acquisitions and for working capital. 

On the timing of the IPO, Gan said it would be “nice” if the shares could fetch a premium over the issue price amid the uncertainties in the market. 

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