GDEX

GDEX,which is engaged in express delivery services, is strengthening its cash position to tide over the next few years in view of the worsening economy.

As at the end of its first quarter ended Sept 30, 2008 GDEX’s cash reserve stood at RM7.7 million, up 26% from RM6.1 million as at end-FY08. One of the ways to build a stronger cash position was to reduce its borrowings. As at end of 1QFY09, its total borrowings stood at RM8.9 million, which was 5% lower from RM9.4 million in FY08.

It would also build on its high-value customers. These are the big customers who are very good paymasters. As for its low-value customers, it would encourage them to use its online services, which requires less management.

The company has also outlined a debt recovery procedure and introduced a prompt payment rebate for payment made within 60 days.

Financial Results …

In 1QFY09, GDEX’s net profit rose 15.7% year-on-year to RM900,000 on the back of 26.2% rise in revenue to RM20 million. Its net profit for FY08 soared 42.6% to RM2.98 million from the previous year, while revenue rose 18.7% to RM68 million.

It would make use of the global economic crisis (2008) to build up its strength and look at ways to expand into the Asean region. GDEX currently has operations in Malaysia and Singapore.