KUALA LUMPUR (Oct 22): Boustead Holdings Bhd's chief said the diversified group was "rightsizing for competence" when it embarked on non-core asset sales.

The Edge Malaysia business and investment weekly (Edge Weekly), in its latest October 24-30 issue, quoted Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin as saying non-core asset sales were crucial to ensure Boustead's operations were effective and efficient.

“Some might think we liquidated or sold assets to make up for the shortfall in revenue and profit coming from those sectors. I don’t agree because we were rightsizing for competence at every level of our operations and to ensure we were cost-effective and efficient. This was going on for the last four to five years.

“I am quite sure that the results will not only be supported by the disposal of non-core businesses and assets but most divisions will contribute well to the group’s total revenue and profit and we will also sustain the group’s operating profit,” Lodin said.
 
Boustead's businesses include oil palm plantation, financial services besides property development and investment. 

The group's net profit climbed to RM225.8 million in the second quarter ended June 30, 2016 from RM2.9 million a year earlier. Revenue was lower at RM2.07 billion versus RM2.21 billion.

First-half net profit rose to RM204.3 million from RM3 million a year earlier while revenue was lower at RM3.93 billion compared to RM4.1 billion. Boustead paid a dividend of four sen a share for the quarter in review.

On Friday (Oct 21), Boustead shares closed unchanged at RM2.11 for a market value of RM4.28 billion. A total of 113,500 shares were traded.
 

For a better understanding on Boustead under Lodin's stewardship, kindly pick up and read the latest Edge Weekly issue.

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