Reporting its strongest performance to date, Tanjong registered a 9% increase in its Group turnover for its financial year ended January 31, 2004, from RM2.46 billion to RM2.68 billion. Group operating profit rose in tandem with the turnover increase, recording a 17% increase to RM660 million compared to RM562 million previously.
At its 77th Annual General Meeting today, YBhg Datuk Khoo Eng Choo, Chairman of Tanjong said, "As a result of our Group’s continued focus to build on our core businesses, we have been successful in generating strong operating cashflows amounting to RM743 million for the financial year ended 31 January 2004, while earnings per share registered a 24% growth from 83.8 sen to 103.9 sen."
With the improvement in its earnings and cashflows, Tanjong will continue with its practice of maintaining an attractive payout ratio whilst conserving adequate funds to enable it to pursue new investment opportunities that will be critical to its long term earnings growth.
For the financial year ended 31 January 2004, its total gross dividend amounted to 66 sen per share, a 74% increase over the previous year's gross dividend of 38 sen per share. Tanjong had also recently declared a first interim gross dividend of 8 sen per share, less Malaysian Income Tax at 28%, based on the results for the first quarter ended 30 April 2004.
"Tanjong's investment profile comprises businesses that generate substantial cashflows. The resilience of the Group's earnings and the stability of its cashflows will make it possible for us to pay dividends on a more regular basis in future, as long as there are no competing investment requirements," explained Datuk Khoo.
Elaborating on Tanjong's investment policy, Datuk Khoo said, "Our criteria is based on quantitative and qualitative factors, including cashflows, earnings enhancement and the opportunity to leverage on our core competencies and management expertise."
