PETALING JAYA, April 4, 2016 – Boustead Holdings Berhad emerged from an exceptionally tough year with satisfactory profit and a renewed commitment to strengthen operational efficiencies, while capitalising on the opportunities that lie inherent for its diversified core businesses.
For the financial year ended 31 December 2015, the Group delivered a profit before tax of RM269 million on the back of a revenue of RM8.7 billion. The Property Division was once again the Group’s highest contributor, followed by the Plantation, Pharmaceutical, Finance & Investment and Trading & Industrial Divisions. The Heavy Industries Division recorded a deficit during the year under review.
True to the Group’s commitment to delivering shareholder value, the Board declared a full year net dividend of 20 sen per share for the financial year, with a total dividend payout of RM207 million. This represents a 4.7% yield based on the closing price for the financial year.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “The Boustead Group is not easily deterred by depressed economic conditions, as demonstrated by our track record in overcoming these challenges. Despite the headwinds, globally and locally, that have had a direct impact on our businesses, we have stayed true to our strategic business direction of building value within our various investments and harnessing their inherent strengths.”
In line with its commitment to improve financial flexibility and enhance liquidity, subject to shareholders’ approval at the Group’s Extraordinary General Meeting (EGM) today, Boustead will execute a proposed renounceable rights issue and a proposed bonus issue. The proposed rights issue will involve the issuance of up to 413,671,221 new shares at RM0.50 each. The proposed rights issue is on the basis of two new shares for five BHB shares held at an entitlement date that will be determined later and is expected to raise over RM1 billion for the Group.
The proposed bonus issue involves the issuance of bonus shares on the basis of two bonus shares for five BHB shares held by shareholders of BHB following the proposed rights issue.
YBhg Tan Sri Dato’ Seri Lodin added, “The proposed rights issue and bonus issue provides us with a sizable war chest to seize opportunities for inorganic growth. In addition, we are able to provide our loyal shareholders with the opportunity for greater participation in the equity of BHB.”
“In addition to the rights issue and bonus issue, we are currently undertaking the disposal of our 30% stake in Jendela Hikmat Sdn Bhd, which owns land in Bukit Raja, Klang, enabling us to recognise a profit of RM198 million and recover RM119 million in advances. The disposal which is expected to be completed within the year, will further enhance our profitability,” concluded YBhg Tan Sri Dato’ Seri Lodin.
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 subsidiaries, associate companies and joint ventures, 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 & industrial and pharmaceutical. As at 31 December 2015, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.8 billion. Market capitalization is currently in excess of RM4.45 billion.
Forward looking statements
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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