Fitters Diversified Bhd ... Oct 2008

Transport Minister Datuk Ong Tee Keat and a select team are understood to be scrutinizing several railway contracts awarded by the government and KTM. Among the contracts being examined are the northern portion of the double tracking railway project – from Ipoh in Perak to Padang Besar in Perlis – and at least once contract recently awarded by KTM’s board to a subsidiary of Fitters Diversified Bhd.

Fitters made an announcement to Bursa stating that it had been awarded two contracts, valued at RM64.8 million, to convert the brake systems on KTM’s wagons from vacuum and dual brake to air brake for Rm54.2 million, was well as a RM10.6 million contract for setting up a maintenance and service centre for KTM.

Fitters is understood to have received the green light for two said jobs in April 2007, but was only given the letter of award on Sept 2008. It is learnt that two weeks before that, senior officials at KTM and the Ministry of Transport were instructed to review the award. This, however, went unheeded.

It is understood that other companies have offered to do the same jobs at a much reduced rate. Fitters’ mainstay is fire fighting and fire equipment. However, the company also has ane engineering arm, which conducts such jobs as the one recently awarded. The bulk of Fitters’ revenue in 2007 came from its fire protection arm.

Financial Results …

For the six months ended June 2008, Fitters posted a meager net profit of RM194000 on the back of Rm74.4 million in revenue. For the corresponding period a year earlier, Fitters raked in a net profit of RM2.9 million from RM62.2 million in sales.