Tasco targets revenue growth of up to 10%

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KUALA LUMPUR: Logistics services provider Tasco Bhd expects its revenue for the financial year ending March 31, 2015 (FY15) to grow between 8% and 10%, driven by organic growth, said executive chairman Lee Check Poh.

For the 15 months to March 31, 2014 (FY14), Tasco saw its net profit rise 5% to RM30.49 million from RM28.89 million a year ago on higher demand for its products and services in domestic and international markets.

Revenue for FY14 jumped 26% to RM559.6 million from RM442.8 million. The group had changed its financial year end date from Dec 31 to March 31.

“This year, we target revenue to grow steadily between 8% and 10%, and profit growth to reach 8% to 15%, driven by organic growth and operational excellence which we are maintaining [at] our current momentum,” he told reporters after the group’s annual general meeting yesterday.

Lee also said the group will spend some RM60 million in capital expenditure this year, mainly for warehouse expansion and fleet replacement.

“Some RM35 million will be used for our facility expansion in Port of Tanjung Pelepas, Johor, while RM10 million will be used to replace and repair our existing fleet,” he said, adding that the facility expansion is expected to be completed by year-end with operations to commence in January next year.

This article first appeared in The Edge Financial Daily, on September 11, 2014.