The group will continue to focus on its businesses in the UAE and India to expand its non-concession income base, especially in the areas of bio-medical engineering services and facilities engineering services.
Managing director Adnan Mohammad said Faber has recently managed to secure a second contract extension for maintenance of low-cost houses in Abu Dhabi. The first year of the contract is valued at RM62 million. It has also bid for a similar tender in Abu Dhabi. In India it has bid for a RM10 million-a-year contract to service seven Fortis Hospitals.
"We have set a KPI (key performance index) of between 12 per cent and 15 per cent increase in revenue this year, pushed by both IFM and property development activities," he said after the group's annual general meeting in Kuala Lumpur yesterday.
In the financial year ended December 31 2009, Faber recorded a 21.8 per cent rise in revenue to RM805.3 million. Of this, 85 per cent was from IFM and 15 per cent from property development. Its net profit last year was RM106 million.
With a cash flow of about RM300 million in hand, the group is looking to widen its landbank and explore opportunities for potential mergers and acquisitions to expand its IFM business.
Faber plans to launch three property projects this year, with a total value of RM500 million. The residential developments are all located in the Klang Valley. It has a total landbank of 15.39ha, valued at RM850 million.
On the home front, its wholly-owned subsidiary Faber Medi-Serve Sdn Bhd has submitted a proposal to the Ministry of Health to renew its existing 15-year government concession to provide hospital support service.
The current concession covers 79 government hospitals in Malaysia located in Perak, Penang, Kedah, Perlis, Sabah and Sarawak and will expire in October 2011.
Commenting on the possible merger between Faber Medi-Serve and Pantai Holdings Bhd's Pantai Medivest Sdn Bhd, Adnan said: "If the option is there, we will look into it."
By Business Times
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