Fareed: No time for complacency
Fijian Holdings Limited Group chief executive, Nouzab Fareed. Photo: FIJIAN HOLDINGS
By RACHNA LAL
Fijian Holdings Limited (FHL) Group recorded consolidated revenue of $233 million for the year ended June 30, 2013.
Group chief executive, Nouzab Fareed, confirmed this was the highest revenue ever recorded by Fijian Holdings which is the largest and most diversified group in Fiji.
This was an increase of 27 per cent compared to the previous financial year when the consolidated revenue was $183 million.
Mr Fareed said almost 75 per cent of the revenue was from RB Patel Group, South Sea Cruises and FHL Media (previously Yasana Holdings Limited).
In fact, RB, South Seas and FHL Media together with Basic Industries have basically account for ¾ FHL revenue.
Meanwhile, the group’s consolidated pre-tax profit was $18.16 million compared to $16.6 million in the previous year.
The holding company recorded a pre-tax profit of $9.8 million, a growth of five per cent from the previous year.
Group chairman, Iowane Naiveli, said the impressive performance despite a difficult year was an indication of the hard work of their people and their business focus.
“FHL’s investment strategy has worked and still we have got some opportunity to grow,” he said.
“Shareholders are content with the net worth of the company has grown by 15 per cent to $202 million.”
Mr Fareed said the group managed to reach their goal despite the difficult year.
“Our total investments of $87 million during the year would reap much higher benefits in the years to come,” he said.
No time for complacency
But despite the good results, Mr Fareed stressed there is no time for the group to be complacent as they still have more to do.
He said fact remained that three group companies namely; Basic Industries Limited, Papua New Guinea-based Pasifika Holdings and FHL Logistics made a total loss exceeding $5.6 million.
“If not for these losses, the group may have achieved pre-tax profit in excess of $23 million,” he said.
“But the most important achievement is that we have been pro-active and taken right strategies to avoid the same in the future.”
Mr Fareed said Basic Industries made a pre-tax loss of $2.8 million compared to $800,000 profit the previous year, which was a big shock for them.
Plans to reverse losses
With these setbacks, Mr Fareed said they now have developed strategies for the three companies which posted losses and are now optimistic to have turnarounds in the coming year.
He said they will be entering into strategic partnerships in Basic Industries and FHL Logistics.
“There is some new partnership in Basic Industries which is all confirmed and we will be announcing soon,” he said.
“Also, within the next three months, we are confident that we will be going into a new partnership for FHL Logistics.
“Pasifika Holdings loss can be avoided with the new land acquisition which we have completed this year in Papua New Guinea.”
Medium term goal
Meanwhile, Mr Fareed said their medium term strategy was to reach a group revenue of $500 million.
“At this stage, we are confident next year, we will be able to get closer to $300 million revenue,” he said.
“We are happy and content but we still should not wait and watch. We could have done much more but we don’t believe in complacency.