SARAWAK Consolidated Industries Bhd (SCIB) has re-assured investors that its daily operations are conducted freely by senior management and are abiding to its existing corporate governance guidelines.
Group managing director and CEO of the integrated civil construction service provider Rosland Othman reiterated that SCIB operates separately and autonomously despite being often linked to issues or affairs of Serba Dinamik Holdings Bhd vis-à-vis its controlling shareholder Datuk Dr Mohd Karim Abdullah who holds a 47.5% stake.
Mohd Karim is currently the group managing director and group CEO of Serba Dinamik.
Rosland admitted that following the flagging of accounting issues pertaining to Serba Dinamik’s FY2020 financials by its external auditor KPMG, SCIB has been severely impacted with the latter’s share price having dipped 44% year-to-date to 77 sen (Jan 1: RM1.37) at the close of today’s (June 17) trading.
“Of course, Mohd Karim is both our major shareholder and chairman. But all out daily business activities are managed ourselves autonomously,” he told FocusM.
“In all fairness, our business is still in good hands with Mohd Karim’s non-executive chairmanship as he never meddled with our business affairs.
“This is despite SCIB having benefitted from the guidance that he has rendered in terms of business direction coupled with his extensive business networking.”
Prospect-wise, Rosland stressed that it is still “business as usual (BAU)” at SCIB with the company’s construction division continuing to be the main revenue contributor to the group.
“Presently, SCIB has tendered for RM2.4 bil worth of future projects both domestically and abroad within the group,” he pointed out.
According to Rosland, SCIB has set an annual target size of RM2.5 bil for its bidding exercise in addition to a 30% dividend policy for its shareholders.
“This is part of our commitment to our loyal shareholders to partake profit sharing,” he noted, reckoning that now is the best time to invest in SCIB based on the notion of risk and opportunities.
Currently, the Kuching-based company is eyeing business expansion to Peninsular Malaysia considering that all these while, it is linked to mega infrastructure projects valued at RM22 bil in Sarawak.
For 2021, the group manages to secure few projects in Peninsular Malaysia related to Pr1ma Corp Malaysia, Perumahan Penjawat Awam Malaysia (PPAM) and potential road maintenance contracts.
At 11.30am, SCIB was up 1.5 sen or 1.95% to 78.5 sen with 8.39 million shares traded, thus valuing the company at RM385 mil. – June 18, 2021
