Artwright Holdings Berhad
PRESS RELEASE
Kuala Lumpur,
December 29, 2005
Artwright reduces gearing ratio significantly while focusing
on supply chain management and new high-value facility for higher growth.
Artwright Holdings Berhad
(“Artwright”), a leading international office furniture company known for
good design and innovative office interior solutions had her 12th
Annual General Meeting in Kuala Lumpur. Artwright recorded an increase of
8% in revenue to RM53.7 million in the last financial year ended 30 June
2005.
Artwright
had recently completed a Share Sale Agreement with Steelcase Inc, a USA
office furniture company, in November 2005 to dispose the 25% shares of the
manufacturing joint venture in Steelcase Artwright Manufacturing Sdn Bhd
(“SAM”). Under the new relationship, Artwright also entered into a
supply agreement with Steelcase Inc for the supply of certain Artwright
product ranges from SAM factory.
The Artwright Group recorded a profit before taxation of RM0.23million
compared to a profit before tax of RM4.02million in 2004 mainly due to
Artwright’s share of loss in the associate company of the joint
venture SAM. Without the associate company SAM financial adoption for
two comparative years, the Group’s net profit after tax comparative figures
for the year ended 30 June 2005 was RM3.70million, an increase of
176% compared to RM1.34 million in 2004.
The SAM disposal exercise
has reduced the Artwright Group’s gearing ratio from 1.31 to 0.47 and
reduced the total borrowings of the Group from RM 25.259 million to RM 8.634
million.
“We are
positive that this decision helps Artwright improves our flexibility and
response to our customers in a more competitive manner. Our strategies
going forward are threefold: firstly, we must ensure that our products and
services meet our customers’ quality expectations. Secondly, there must be
design and functional consistency across our entire product range so that
our customers get values throughout the life of their investment and
thirdly, we must expand our existing customer base aggressively. We are
confident that Artwright has the skills and experience to implement these
strategies successfully. “
Says Artwright’s managing
director Yong Yoke Keong.
Artwright’s
focus is in continuously improving the business direction in the new
business model, popularly known as “the Nike of office furniture” because
the company focuses on product and market development and also the quality
assurance of the products, fulfilment cycle, customer experience, and
customer satisfaction. The Group is also embarking on supply chain
management to improve on out-sourcing certain furniture productions for
better cost leverage with stringent design control and quality assurance.
Yong
informed “We are also working on a high-value-add manufacturing and
logistics plant as well as a larger showroom in a new location to be
completed in the next 6 months to complement the new business model supply
chain management.”
Artwright is on track for
healthy growth with significant projects being implemented in several
government complexes in East Malaysia, and multinational companies including
Lucent Technologies and PeopleSoft in India. Artwright mainly addresses the
export markets of Middle East and Far East regions, and the furniture
industry demand in these regions are healthy in the foreseeable future.
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