Century Logistics to continue double digit growth

SHAH ALAM: Century Logistics Holdings Bhd, an integrated logistics services provider, expects to continue its strong double digit growth this year driven by its existing core businesses and mergers and acquisitions (M&As) activity.
The group provides floating storage and transshipment services for international oil trading companies and procurement logistics services to electrical and electronics customers.
It is also involved in supply chain management and ship-to-ship (STS) transfer for fuel oil traders, including services for floating storage units (FSU) within the port limits of Port of Tanjung Pelepas and Pasir Gudang in Johor.
"Currently the space of Century Logistics is running at full capacity," its managing director Steven Teow Choo Hing told reporters after its AGM here yesterday.
For its financial year ended Dec 31, 2014 Century Logistics posted a net profit of RM33.29 million, an increase of 47.63% from RM22.55 million a year ago.
The group registered revenue of RM275.23 million for the same period, up from RM255.81 million for the same period in 2013.
"This year definitely we will do better," he added.
He said the group had recently invested close to RM140 million to build a multi-storey warehouse in Klang (Selangor) as part of its business expansion.
"The total size (of the multi-storey warehouse ) is going to be about 600,000 sq ft. That should increase our space by 30% to 40%," he added, noting the new facility is expected to be completed by end of 2016.
To date, the company has a total of around 1.5 million sq ft of warehouse space across its facilities, in which additional 500,000 sq ft were rented out from other landlords.
Meanwhile, Teow revealed that the group is currently seeking to acquire a document management services company to complement its existing business, without setting a time frame for its M&A plans.
"We have got various potential enquiries going on. In the meantime, we are in talks with them and understanding their business.
"We have seen a few but they don't really meet our criteria. We want a certain level of professionalism before we embark on them," Teow added.
Its finance director Edwin Yeap said the M&A will be made via internal generated funds, noting that the group has between RM40 million and RM50 million of cash balance currently.