CFM mulls acquisitions

KUALA LUMPUR: Computer Forms (Malaysia) Bhd (CFM), which saw its net profit slump by 88% in the financial year ended March 31, 2014 (FY14), said it would consider acquisitions in the future aside from actively reducing costs.
Its managing director Muhayuddin Musa said the group, which has three core business segments including business forms and data print services, commercial printing and flexible packaging, said it would consider mergers and acquisitions if the opportunity arises.
"At this moment we will remain focused on what we have been doing for the last 40 years," said Muhayuddin, commenting on its future plan for its business after the group's AGM yesterday.
He said the group plans to reduce its production costs for its flexible packaging segment that was hit by increase in costs of raw materials, electricity and labour.
"We will look at areas where we can actually reduce our costs," said Muhayuddin.
Apart from its high production costs, net profit was also affected by lower exports. The group prints and distributes it products in Malaysia and other Asean countries, making it the largest company in producing computer forms in the country.
The group's business forms and data print services segment contributed 40% to its revenue in FY14, 35% from the flexible packaging segment, and the remainder from its commercial printing segment.
"The revenue compared to last year has dropped 5.5%. In general, the market moving forward is going to be a tough market condition," he said.
CFM's net profit for FY14 stood at RM300,000 compared with RM1.5 million last year, while revenue fell to RM48.9 million compared with RM51.4 million in its previous financial year.
The group was optimistic in gaining profit as it sees potential and positive demand from its customers in each of its business segments.
"There is always demand for the product, as fewer printers are doing this business," said its executive director Lee Yu Jin.
CFM shares were up 10 sen, or 7.14%, to close at RM1.50 yesterday with 30,400 shares traded.