2007 Annual Report
On behalf of the Board of Directors, it gives me great pleasure to present the Annual Report and Audited Financial Statements of SEG International Bhd (“SEGi”) and the Group for the financial year ended 31 December 2007.
The 2008 Budget focuses on three (3) main strategies, namely, enhancing the nation’s competitiveness, strengthening human capital development and ensuring the well-being of all Malaysians. Human capital of high quality is critical in ensuring that Malaysia achieves its objectives of becoming a developed nation. Hence, the quality of education as well as training will continue to be given emphasis.
The Group achieved higher revenue of RM86.3 million for the financial year under review, as compared to the previous financial year of RM74.2 million, representing a commendable improvement of 16%. In tandem with the higher revenue, the Group recorded a higher profit after taxation and minority interest of RM5.3 million for the financial year ended 31 December 2007 as compared to the preceding financial year of RM1.9 million.
The better performance of the Group was mainly attributable to the overall increase in student enrolment at the Group’s colleges and training centres. A major contributing factor to the increase in student enrolment is the launch of SEGi’s new flagship campus with full-fledged facilities, and which is strategically located in the bustling and fast growing hub of Klang Valley.
The Board of Directors is recommending a final dividend of 2 sen per share, less income tax, for the financial year ended 31 December 2007, subject to the shareholders’ approval at the forthcoming Annual General Meeting (2006 : 2 sen per share less income tax). No interim dividend has been paid or declared for the financial year ended 31 December 2007 (2006 : nil).
I am delighted to report that the launching of SEGi new flagship campus marked our commitment to provide high quality learning opportunities for Malaysians in conjunction with the Government’s Higher Education Strategic Plan. The full-fledged campus is equipped with state-of-the-art facilities to provide a range of academic courses, particularly in niche areas such as nursing, pharmacy, medical and health sciences and bio-technology.
The Group also promotes a culture of life-long learning among Malaysians by introducing programmes ranging from skills training to university or college education academic courses.
During the year, SEGi received the Technology Business Review Asean Awards in the category of “Excellence in Education Sector”.
Another notable achievement that we are proud of is that our efforts to upgrade the quality of our colleges have been recognised. I am pleased to announce that we have been officially invited by Ministry of Higher Education to set up SEGi University College in April 2008. The invitation to set up a university college has created an exciting new chapter for our Group. This will bring the Group closer to fulfilling its vision and mission to be the premier education and training provider for all levels of society, and to empower learners with education and training relevant to industry needs so that they can contribute positively to the global community.
During the financial year under review, the Company proposed for the sale and leaseback of its property located at Kota Damansara, Selangor Darul Ehsan (“KD Campus”). This proposal was completed in January 2008. The sale and leaseback is in line with the Group’s strategy to focus on its core business, which is education and training. Thus, property holding and property management are not the Group’s forte.
The sale and leaseback helped the Group to maximize its resources and meet its expansionary strategy. The disposal of KD Campus enabled the Group to unlock capital resources from being tied up in long-term assets and allowed the Group to better focus on its core business in the education sector. In addition, the Group was able to realise the properties at a fair market value, enhance its liquidity and strengthen its financial position.
The leaseback of KD Campus ensures that the on-going business operation of the Group is not disrupted and its campus continues its operations at the existing location in Kota Damansara.
The Group acquired an I.T. company in the business of developing and providing integrated learning training solutions on 9 April 2008. The company was granted the Multimedia Super Corridor Status which entitles it to enjoy Pioneer Status incentives. The company is now involved in providing I.T. solutions to SEGi College campuses.
Human Resource Development
The Group has always emphasised on succession planning and career development as we recognise that talent management is critical to long-term survival. We have introduced a variety of programmes that focus on maximising leadership effectiveness and nurturing talents within the Group.
We encourage our staff, in particular the academic staff, to pursue Masters or Doctorate degrees, to improve and upgrade themselves. We are also working closely with our partner universities to provide quality education to our staff to enable them to achieve their dreams of obtaining postgraduate qualifications.
The Group will continue to promote a performance culture driven by excellence.
Corporate Social Responsibility (“CSR”)
Ever mindful of our role in CSR, the Group has actively integrated CSR initiatives as part of our business operations. The Group believes that effective corporate responsibility is of benefit to its businesses and, in turn, to its shareholders. We are working towards making CSR an integral component of all future strategies to enable the Group to contribute towards society in ways that will create value for shareholders.
During the year, the Group continued with its CSR initiatives in education and participated actively in social community. The longstanding commitment to foster educational excellence has in turn benefited the community. The Group has given out over RM10 million worth of scholarships, bursaries and promotion of charity, sports and other nation building initiatives. Our contributions go beyond plain financial support. The Group actively encourages its employees to support and participate in the various community service projects and philanthropic activities.
The prospect of the education sector remains bright with the Government’s efforts in increasing opportunities for education as well as assisting to finance the cost of education. The current financial year will be an exciting one which offers both anticipated and unprecedented challenges. The Group will begin its operations as a University College and will offer new fields of studies. It will also step up efforts to intensify research and development. The Group believes that holistic education will help the youth in their future careers and to excel academically.
With steadfast determination and collaboration between the leaders, SEGi achieved rapid transformation over the past three decades. We are confident of achieving greater success in providing quality education with the strong foundation that we have built thus far.
On behalf of the Board, I wish to extend our appreciation to our valued shareholders, global partners, students, regulatory authorities, bankers and business associates for their continued support and confidence in the Group.
Our sincere thanks and gratitude also go to the management and staff who have played a critical part in the success of the Group.
Last but not least, I would like to take this opportunity to thank my fellow board members for their support and cooperation during my tenure with the Company. I will be retiring from the Board at the forthcoming Annual General Meeting.
Datin Fadzilah bte Saad and Encik Abdullah Kamal Shafi’i will also be retiring at the forthcoming Annual General Meeting. On behalf of the Board, I wish to record our appreciation to Datin Fadzilah and Encik Abdullah Kamal for their invaluable contribution and input to the Company and the Group.
Dato’ Pahamin A. Rajab
15 May 2008