PETALING JAYA: Practise Note 17 (PN17) company Zelan Bhd
is cautiously optimistic about its prospects in 2023, as it sets its sights on opportunities to expand its revenue stream.
In a statement in its latest annual report, the engineering and construction firm said it looks forward to participating in projects spearheaded by the private sector by putting forward competitive bids.
“With our experience and expertise, we are confident that we can deliver according to the specifications and timeline agreed upon.”
For its existing contracts, Zelan said it will continue to deliver the best services to its customers.
“We will continue to optimise potential revenue and progressively reduce costs as we deliver uncompromised quality. In the meantime, the group will continue to prudently manage operations.
“The group actively participates in viable tender exercises to leverage our capabilities.”
Last week, Zelan announced it had triggered the criteria pursuant to PN17 of the Main Market listing requirements of Bursa Malaysia.
In a statement, Bursa Malaysia said it would continue to monitor the progress of the company. The PN17 classification involves financially distressed companies that are listed on the Main Market.
For its financial year ended Dec 31, 2022 (FY22), Zelan reported a net loss of RM5.6mil, compared with a net profit of RM4mil in FY21.
Revenue for the year stood at RM45.44mil, compared with RM45.9mil the year earlier.
In a filing with the stock market on its FY22 performance, Zelan said it is actively participating in tender exercises in its efforts to to pursue new projects whilst continuously implementing strategies for cost control.
“The group’s current revenue is principally derived from the Asset Management Service (AMS) at the Centre for Foundation Studies (Phase 3) International Islamic University Malaysia (IIUM), Gambang campus in Pahang (IIUM Gambang project).
“The provision of AMS is in accordance with the terms and conditions of the concession agreement which has been executed with the government and IIUM.”
Zelan said the income from the IIUM Gambang project will enable the group to have a stable income stream for the tenure of the concession till 2035.
