On behalf of the Board of Directors, I am pleased to present the annual report and audited financial statements of the Company and the Group for the financial year ended 31 December 2010.

Overview and results

For the financial year ended 31 December 2010, the Group recorded a profit before tax and profit after tax of RM23.606 million and RM17.152 million, an increased of 154% and 151% from profit before tax and profit after tax of RM9.301 million and RM6.845 million achieved in previous financial year. The Group revenue of RM310.222 million represents an increased of 52% from RM204.614 million recorded in the previous financial year.

Segi Tiara Sdn Bhd, a wholly subsidiary of the Company which has been awarded construction works in respect of the coastal highway worth approximately RM538.00 million in the Iskandar Region is the major contributor to the profit of the Group. Works for the construction of the coastal highway has commenced since April 2009 and has been implemented successfully and it is anticipated that the project will be completed on time.

As anticipated, the construction of the coastal highway has brought business opportunities for other subsidiaries within the Group with increased revenue from building material supplied and machinery rental at the construction sites.

The Group's decision in investing and developing its land bank has also brought about slightly better income for its property arm as compared to last year. The overall better sentiment in the property sector has also boosts the sales of the Group's development in Kajang Perdana. It is expected that prices in property will continue to increase in view of the MRT to be built under the Greater KL Project with better accessibility between Kuala Lumpur and Kajang.

With the Group's success in the Iskandar Region, the Group intended to secure more construction works in and around the Iskandar Region. The Group has entered into a joint venture relationship with Kumpulan Prasarana Rakyat Johor Sdn Bhd (“KPRJ”), an investment arm of the Johor State to initiate its effort in securing jobs under the newly launched Johor Bahru City Transformation Project. It is hopeful that under this new project, the Group will be able to secure more infrastructure as well as property development work.

Dividend

The Board of Directors does not recommend any dividend for this year as the company would need to reserve funds to finance the completion of the construction contract in hand and to venture into other business opportunities.

Corporate Development

The Group’s plan to further strengthen its presence in the Iskandar Region is made possible by the joint venture between the Group and KPRJ through the acquisition of a private limited company to spearhead the transformation work under the Johor Bahru City Centre Transformation Project.

While the Groups continues to concentrate its effort in securing more works, its effort in upholding higher standard of corporate governance to enhance shareholders value will be adhered to.

As part of the Company’s commitment towards corporate social responsibility, the Company has made contribution towards certain charitable organizations.

Industry Overview and Prospect

According to Bank Negara, the Malaysian economy registered a growth of 4.8% for Q4 2010, with the main contributor being higher private and public sector spending which in turn contributed to the expansion in domestic demand.

The construction sector registered a higher growth during Q4 (5.6% as compared to 2.8% in Q3 2010), reflecting broad improvement in the overall construction industry. The expansion in the non-residential sub-sector was due mainly to the construction of offices and retail spaces, while growth in the civil engineering sub-section was supported by further progress in the implementation of infrastructure projects. The residential sub-sector turned around to record a positive growth in the Q4 (Bank Negara Malaysia, Quarterly Bulletin).

The Budget for 2010/2011 as announced has been hailed as a budget with the intention to transfer the Malaysian economy with RM49.2 billion being allocated as development expenditure. Emphasis has been placed on public private partnership projects (“PPP”) to spearhead development with RM12.5 billion worth of PPP being planned to be implemented.

Emphasis has been placed on the development in the Klang Valley region, particularly Kuala Lumpur. With its headquarters set in Kuala Lumpur and its business relationship with its trading partners, the management hopes to secure more work in the Greater KL project and through this, the management hopes to continue to grow its marketing and construction business.

Notwithstanding the emphasis placed on projects in the Greater KL, projects in the economic corridors have not been forgotten with RM339 million being located for Iskandar Malaysia. The Group, which has invested its effort and time in the Iskandar Malaysia hopes to continue to strengthen its positions and presence there. One of the projects which the Group has been concentrating is the project to transform the Johor Bahru City Centre into a world class metropolitan. As mentioned above, the Group is hopeful of securing works under this project together with KPRJ.

Going forward, the global economy recovery is expected to remain uneven across different regions. While short term prospect for the advanced economies have improved recently, uncertainties remain over weak fiscal positions, high unemployment and constrained lending conditions. The growth outlooks for Asia, however, remains favorable, supported by robust domestic demand even though the regional economies are confronted with challenges of rising inflation and large and volatile capital flows.

Economic growth in Malaysia will be affected by the environment of moderating external demand but will be well supported by continued firm expansion in domestic demand. Private consumption spending will continue to benefit from the favorable labor market conditions, firm commodity prices and access to financing. The roll out of construction and infrastructure activities and the implementation of the economic transformation program by the government are likely to provide significant support to the growth momentum in private investment. With this positive tone being set by plans and activities to be implemented by the government under the budget, the Group is confident that barring unforeseen circumstances, the opportunities to further grow the Group business remains abundance.

Acknowledgment

On behalf of the Board of Directors, I would like to express my sincere thanks to my fellow directors, management team and staff for their collective commitments and undivided contributions to the Group during the year. I also would like to thank our valued shareholders, customers, business partners and bankers for their support and confidence in the Group, I also extend my appreciation to all our management and staff for their dedication, hard work and contribution to the Group.

Datuk Halimah Binti Mohd Sadique
Chairman