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Categories
| TFP Solutions looks ahead to a better year |
| Business & Market 2009 | |||
| Written by Siti Sakinah Abdul Latif | |||
| Monday, 19 October 2009 11:01 | |||
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He said the company hoped it could turn around before year-end after recording net losses in the first two fiscal quarters. ICT companies depended greatly on the country’s economic growth and in an economic downturn, budget for ICT was usually the first to be trimmed, he added. “But when the economy recovers, ICT investment is the last to come in, as companies tend to spend on machinery that can produce instant results, rather than ICT,” he told reporters after the company’s EGM last Friday. Jamaludin said the company was doing its “best to improve bottom line” by taking on advisory jobs, undertaking cost-saving measures and increasing productivity. “It (growth) goes along with the economy. If the economy moves forward and has positive growth, then there is definitely positive growth in our sector. There may be a time lag as ICT is the last to be considered (after a crisis), but the ICT industry follows the national trend,” he said. ACE Market-listed TFP Solutions recorded a net loss of RM686,000 in its first quarter (1Q) ended March 31, 2009, on the back of a RM2.57 million revenue. The net loss narrowed to RM399,000 in the second quarter as revenue improved to RM3.09 million. At the EGM, shareholders approved the company’s proposal to dispose of two units of four-storey shop-offices at Bandar Puteri, Puchong, Selangor for RM5.1 million cash. The company plans to use RM2.5 million of the proceeds to buy a new building to house TFP Solutions’ six subsidiary companies under one roof. Jamaludin said having the companies in one location would make cost-saving measures more effective. However, he said the company had yet to identify a location. From the balance of the proceeds, the company would use RM1.1 million to repay loans and the rest for working capital. TFP Solutions had earlier expressed interest to venture overseas — notably Vietnam, Thailand and Indonesia — but the economic downturn put paid to the plan. Jamaludin said the company would now be looking at expanding at a slower pace and could not determine when it could revive the overseas venture plan. Financial year 2009 had been challenging, he said. “We will improve. Not sure whether we will be in the black or the red. We love to see how the outcome will be, as we are trying hard and things seem to be getting better.” Asked about the company’s wish list for the upcoming budget 2010, Jamaludin said there should be more incentives for companies to invest in ICT products, especially for the small and medium enterprises (SMEs), which are TPF Solutions’ target market. “Perhaps other than incentives, the government can provide funds for the ICT industry. This fund can be supplied to any government agency for the SMEs to acquire hardware and software,” he said. This article appeared in The Edge Financial Daily, October 19, 2009.
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