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Reliance Pacific Berhad
244521
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Annual Report 2014
On behalf of the Board of Directors, I am pleased to present the Annual Report
and Audited Financial Statements of Reliance Pacific Berhad (RPB) and its group
of companies (Group), for the financial year ended 31 March 2014.
INTRODUCTION
The Malaysian economy was affected by the global economic slowdown and
volatility following uncertainties over monetary policy adjustments in advanced
economies. Malaysia registered a GDP growth of 4.7% in 2013 amid rising
consumer inflation, tighter credit conditions and moderation in financing in the
face of global uncertainties. Demand from the private sectors and improvement
in exports were the main contributors of growth in 2013. Against this backdrop,
RPB continues to work towards enhancement of shareholders’ value.
GROUP PERFORMANCE
For the financial year ended 31 March 2014, RPB recorded a Group turnover of
RM208.8 million and a profit before tax of RM3.5 million against the backdrop of
global economic challenges.
DIVISIONAL PERFORMANCE
Hotel Division
During the financial year under review, the Hotel Division continues to perform
registering a revenue growth of 7.7% and profit before tax of 7%. This growth
is contributed by meetings, incentive, conference and exhibitions (M.I.C.E)
business, corporate and leisure business from both locally and internationally.
The Avillion brand is one of the few homegrown Malaysian hotel brands to have
been continuously recognized internationally for consistently delivering great
value to customers. Avillion Port Dickson (APD) has received many awards since
its operation and was awarded the World Luxury Hotel Awards for 3 consecutive
years from 2010 to 2012.
Avi Spa, an award winning Spa has also received many awards since its operation.
The most recent award is the Hapa World Luxury Award in 2013. These awards
together with many other accolades that we received over the years are
testaments to our product quality and consistent level of service in providing
unique experiences.
International sports events such as the Port Dickson International Triathlon and
Regatta were held on a yearly basis at Avillion Admiral Cove, a successful 100
acres marina resort. The introduction of new events such as the International
Yacht Show and the Merdeka Luxury Lifestyle Show are aimed at creating growth
and international tourism in Port Dickson.
Property Division
The Property Division recorded a revenue growth of 119% and profit before tax
of 346% during the financial period under review over the previous financial year.
The improved performance was mainly contributed by Desa Impian, the 165-
acre mix development/township consisting of commercial, residential, education
and recreation hubs in Bandar Tenggara, Johor. Phase 1 consisting of residential
homes and infrastructure is expected to complete in October 2014.
Admiral Marina & Leisure Club which primarily derives its revenue from the
business meetings, incentive travel, conventions and exhibitions (M.I.C.E)
continues to grow. The corporate retreat and team building business is a further
enhancement to its present services and product range.
Tourism Division
The financial year 2013/2014 is a challenging year for the Tourism Division. The
Division recorded a decline in revenue of 18%.
In 2013, the overall aviation industry is affected by intense competition, political
uncertainty and uncertain global economic climate which has dampened travel
to some key Asian countries. The aviation industry is a good indicator on the
visitor arrivals and the tourism industry.
The slowdown in tourist arrivals has resulted in the negative growth in the
Tourism Division.
PROSPECTS
Looking ahead, 2014/15 will be yet another challenging year. However, we
remained cautiously confident barring any unforeseen circumstances affecting
the economies globally as well as in Asia and Malaysia. The planned launches
of 4 property projects should augur well for RPB in the new financial year 2015.
Property Division
The Property Division is focusing on niche property developments. In accordance
to the survey conducted by iProperty.com, Asia property market sentiment
chairman’s statement