Posted on January 2, 2017
By Wan Ilaika Mohd Zakaria, theSundaily
Inix Technologies Holdings Bhd said it is trying to shift away from its loss-making IT solutions business, reshaping the company to focus on its diversification into dredging and land reclamation instead, according to executive director Mohd Anuar Mohd Hanadzlah.
“We are moving away from our core business, but we will still maintain the IT business until a time we secure a really sustainable project in the (dredging) business.
“Over the years, our IT business has not been performing as well as we expected, which is the reason for us diversifying into the dredging and land reclamation business,” he said.
Mohd Anuar said its IT losses were attributed to high administrative expenses from its ongoing projects, which cost the group about RM8 million in its latest financial year ended July 31, 2016 (FY16).
In its FY16 results, Inix’s net loss widened to RM4.74 million, from RM44,000 in FY15, while revenue declined 28.5% to RM3.74 million, compared with RM5.23 million a year ago, due to the research and development cost incurred during the year for a project which has yet to be commercialised.
“Sand dredging company (Galactic Maritime) made some profit in the last year-end. Our portion is 30%, but it didn’t helped much because our administrative expenses are too high at about RM8 million,” Mohd Anuar said.
Inix made its entry into the dredging and land reclamation business in December last year, by acquiring 30% stake in Galactic Maritime (M) Sdn Bhd for RM7.2 million.
Galactic Maritime is principally involved in the provision of reclamation dredging and environmental protection dredging services.
In November 2015, Galactic clinched a RM34.5 million contract to provide three vessels for dredging and land reclamation works for a project in Penang.
Last July, Galactic Maritime secured an RM18 million sand stockpile and reclamation land project from Meridian Aspect Sdn Bhd, which involved dredging, extracting, loading, transporting and discharging marine sand works in Pulau Indah, Selangor.
The company is also handling two projects in Malacca with a total net book value of RM10 million.
“There is about a billion dollar project (involving sand dredging) in Malacca itself. We have already covered a few hundred acres there in the Klebang area. We are trying to secure more projects,” Mohd Anuar said.
Source: theSundaily
