| On behalf of the Board of Directors, I am pleased to present to you the Annual Report and Audited Financial Statements of the Company and the Group for this financial year eneded 31 October 2008.
Finacial Review For the financial year ended 31 October 2008, the Group recorded a profit after tax and minority interests of RM118.6 million based on a turnover of RM210.6 million. Operation Review The year 2008 saw a full swing of upheaval where events changed at a very fast pace. In the first half of the year, we have runaway inflation where fuel and steel prices rose to record high and caused substantial increase in construction cost. The second half of 2008 witnessed the disastrous meltdown of the world financial markets and the ripple effects on the global economy. Stock prices around the world plummeted and credit markets are squeezed and the global recession sets in. The property sector in the country was not spared by the current economic conditions. It has already weakened and this trend is likely to continue. Despite the challenging year in 2008, the Group’s property development achieved a profit before tax of RM12.8 million. The profit was attributed by the Group two ongoing projects in Bukit Permata and Selayang Mulia which mainly focus on landed properties located just outside Kuala Lumpur. The Group’s commercial investments in Damansara Heights area continue to achieve good occupancy rate and stable rental income. Menara Milenium maintains its 100% occupancy rate and together with the Group’s other commercial investment properties enjoy an average occupancy rate of 97%. HELP International Corporation Berhad’s group of companies, SPB’s education arm, recorded an increase in profit before tax from RM13.4 million in the previous year to RM16.1 million in the current year. During the year under review, HELP group entered into a conditional sale and purchase agreement to acquire approximately 23 acres of land in Subang 2 area for its new campus. This will enable HELP group to further expand its business in the future. For the Group’s Claremont project in Perth, Australia, the group has launched and fully sold the 82 units of high-end apartments. This development is ongoing and will be completed in two stages in 2009 and 2011. For the retail development in Claremont, the first phase will be completed in year 2009 and upon completion, the retail complex will be retained for rental income. Dividend Your directors recommend that a final dividend of 11% less 25% income tax be paid on 29 May 2009. Outlook For year 2009, the Group will continue with its current ongoing developments in Bukit Permata and Selayang Mulia. As regards to the Group’s other core businesses of property investment and education, the Group anticipates that it will remain stable in this coming year. Appreciation I would like to extend my sincere appreciation to all our financiers, business associates, customers and suppliers for the ongoing support and to our employees for their continued effort and dedication in performance of their duties. Puan Sri Datin Chong Chook Yew |