KUALA LUMPUR: High precision plastic parts maker Luster Industries Bhd expects its revenue to resume growing in the financial year ending Dec 31, 2015 (FY15), rising by a single-digit percentage after a decline in FY14.

“I do not foresee we’re going to have significant [revenue] growth this year, but at least some moderate improvements,” its deputy managing director Liang Wooi Gee told The Edge Financial Daily, after the signing of a share sale agreement between Luster and Opal Deluxe Ltd to acquire 600 shares for US$4.2 million (RM15.12 million) cash, for a 60% stake in Pan Cambodian Lottery Corp Ltd (PCLCL), a licensed number forecast operator in Cambodia.

Luster saw its revenue fall 29.2% to RM101.58 million in FY14, from RM143.46 million in the previous year, mainly due to lower sales from a customer in the electronics sector. Its net profit also dropped 82% to RM557,000, from RM3.09 million in FY13.

Liang said the group is seeing higher sales momentum so far this year, but stressed that it usually takes time for a manufacturing business to grow.

“I believe the momentum is growing but not in a fast pace. Dramatic growth normally only happens through mergers and acquisitions in our industry,” he said.

Last Friday, Luster announced that it is venturing into the Cambodian lottery business by acquiring a stake in PCLCL.

The purchase consideration for the proposed acquisition comes with a net profit guarantee of US$3 million in the next three financial years of 2015, 2016 and 2017.

This article first appeared in The Edge Financial Daily, on May 5, 2015.