KUALA LUMPUR, April 5, 2010 – Boustead Holdings Berhad (Boustead Group) is set to increase and improve shareholder value through regular and consistent dividend payments for its 2010 financial year. This follows closely with the Group’s 2009 dividend track record whereby dividends were paid every quarter.
For its financial year ended 31 December 2009, the Group paid out dividend net of tax amounting to 22.1 sen. The total dividend payout of RM184 million represents 54% of the Group’s attributable profit and a 27% increase from the payout of the previous year. This increase in payout was sizeable given the enlarged share capital as a result of a rights issue undertaken during the third quarter of 2009 which increased the shareholder base.
For the fiscal year 2010, the Group expects to maintain its earnings track record.
The Group which is involved in key sectors of the Malaysian economy particularly plantation, property, ship building and repair, defence, manufacturing, services, finance and fast moving consumer goods is wisely diversified in its investments and market share.
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We closed the previous financial year on a positive note having recorded a profit of half a billion. We are heartened by these results and we intend to work hard for the coming financial year to mirror this track record.”
“Already we are encouraged by the initial months of this fiscal year particularly with the fact that crude palm oil prices have steadied and this will have a positive bearing on the results for the Plantation Division. Additionally with the proposed divestment of BH Insurance (M) Berhad to AXA Affin General Insurance Berhad which is subject to shareholders’ approval at the EGM today, we expect an immediate cash flow injection of RM363 million and a profit of RM75 million that will directly hit our bottom line.”
The Heavy Industries Division was the Boustead Group’s largest contributor for its financial year ended 31 December 2009 with a profit of RM145 million albeit conditions that affected this sector adversely. The Property Division was the second highest contributor with a profit contribution of RM106 million. The Finance and Investment Division registered a RM95 million profit mainly due to improved profits from the Affin Group and BH Insurance.
The Plantation Division recorded a profit of RM77 million for the fiscal year ended 31 December 2009. Palm oil price averaged at RM2,170 per metric tonne (MT), a drop from the RM2,794 per MT in 2008. Fresh fruit bunches production totalling 1,106,000 MT was 5% lower than the corresponding period in 2008.
Meanwhile, the Trading Division registered a turnaround from losses to record a profit of RM47 million and the Manufacturing and Services Division recorded an increased profit of RM32 million despite greater competition.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group’s operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading and manufacturing & services. As at 31 December 2009, Boustead Holdings Berhad’s paid-up capital is RM456 million, while its shareholders’ funds stand at RM3.8 billion. Market capitalisation currently is in excess of RM3.0 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Issued on behalf of: Boustead Holdings Berhad By: acorn communications sdn bhd
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