Analabs to focus on efficiency

SHAH ALAM: Analabs Resources Bhd is planning to allocate between RM10 million and RM20 million as capital expenditure (capex) for the financial year ending April 30, 2015 (FY2015) mainly to acquire new machinery and equipment.

Its executive chairman, Kan Yow Kheong, said the RM10 million to RM20 million capex would be used to acquire new machinery and equipment for its manufacturing and building materials business.

"We are reinvesting the machinery and equipment back into our business, rather than acquiring new companies to expand our business," Kan told reporters after the group's AGM yesterday.

"We have a lot of cash surplus in terms of cash and open shares," said Kan, who added that the company currently has close to RM40 million cash and about RM280 million in total assets.

The group, which has more than 40 years' experience in the environmental business, has six core business segments, which includes water treatment plant and environmental, engineer service, professional consultancy on waste management solution, supply of industrial chemical and toll packing, profiling and laboratory analysis on waste and prawn cultivation.

Analabs Resources, which is an investment holding company, also operates in leasing property, trading industrial chemicals, sale of recycled products and recycles industrial waste, as well as providing industrial consultancy and analytical chemists' services through its subsidiaries.

"I hope in the next few years we will not do merger and acquisition (M&A) anymore, but to make this company efficient. I hope to grow the existing (M&A) before the company plans on any other acquisitions," he said.

"The next few years we will concentrate on developing the second-layer of management people to bring the company forward," said Kan.

The group recorded a net profit of RM2.7 million against RM37.5 million revenue the financial quarter ended July 31, 2014, compared with a net profit of RM4.1 million against RM37.3 million revenue for the same period last year.