FCW Holdings Bhd ... Dec 08

It will scout aggressively for businesses that could fit in with the group to generate higher returns.

The company had the means to take on a new business venture but would not say what kind of business it was looking at as that would give away its intention and "limit our scope to look for businesses".

The group is financially quite strong and also have some cash reserve. So, it's possible for us to look at a business opportunity if it comes along.

As at Sept 30, 2008, the company had RM20.18 million in cash and cash equivalents, compared with RM7.03 million a year earlier.

On the company outlook, FCW expected its top and bottom lines to be affected in line with the impact of the global downturn on its main income earner Fujikura Federal Cables Sdn Bhd. It (Fujikura) had a very good year last year (2007). It has good sales locally as well as in the export markets. But given the current crisis, their sales will be slower, and anticipating a reduction in the contribution from the associate company next year.

FCW, which emerged from PN17 category in January 2008, posted RM23.84 million net profit for the financial year ended June 30, 2008 (FY08).

Fujikura, its 42.5%-owned joint venture company, contributed RM24 million in profit before tax in FY08.

FCW also trades in telecommunications equipment. The growth of its current business would be "flat" next year (2009).

The rental is quite fixed. Given the current economic situation, they do not foresee trading businesses to contribute significantly higher revenue than last year. So a lot will hinge on what new business they can bring in.