Century Logistics quarterly profit increase fivefold

CENTURY LOGISTICS Holdings Berhad, a provider of supply chain management solutions, recorded more than a fivefold increase in its first quarter ended March 31 net profit after minority interest of MYR6.6 million (US$1.98 million), up from MYR1 million a year earlier.

Revenue rose by 51 per cent to MYR59.8 million, up from MYR39.6 million the previous year as a result of increased business activities in tandem with the economic recovery and new contracts secured, a company statement said.

The main contributor to group revenue is its total logistics services, which comprise third party logistics, contract logistics, and oil and gas logistics. This division contributed 90 per cent to the group's revenue, while the balance of 10 per cent is from its Procurement and Assembly division.

Managing director Steven Teow said: "Total logistics services remain our main revenue contributor. This is due to the growing needs for businesses to outsource all or parts of their supply chain to logistics expert like us as global supply chain becomes more complex and sophisticated."

Going forward, Century said it is expanding its warehouse and storage capacity in Pelabuhan Tanjung Pelepas by a further 3,139 square metres, in order to meet the increasing demand. The additional warehouse in PTP is expected to be completed by the third quarter of 2010. Century also took a position on a 30 acres site in Bukit Raja, Klang for future expansion when the need arises.

In conjunction with the growth of its storage space, the group's fleet size will also expand from 170 to 200 units.

"Our financial track record remains strong. Not only were we profitable during the financial downturn, we managed to post record earnings. Our healthy balance sheet and cash flow will enable us to grow the company further either organically or via merger and acquisitions," said Mr Teow.

(Source:www.schednet.com)