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Thursday, September 11, 2014

Tasco targets between 8% and 10% growth in revenue for FY2015


SHAH ALAM: Logistics firm, Tasco Bhd, is targeting between 8% and 10% growth in revenue for the current financial year ending March 31, 2015, driven by its four business pillars namely air freight forwarding, ocean freight forwarding, contract logistics and trucking division, said its executive chairman Lee Check Poh.

"Our first quarter results indicate that we are heading in the right direction of growth and development," he told reporters after the company's AGM here yesterday.

For the first quarter ended June 30, 2014, Tasco saw a 73% increase in net profit to RM9.969 million compared to RM5.730 million a year earlier while revenue gained 29.2% to RM134.8 million from RM104.3 million.

Lee said the contract logistics division will be the main revenue contributor and the company will continue to work to secure more clientele.

He said the company, which has a strong clientele in the electronics and electrical industry, has expanded into other industries namely fast moving consumer goods, e-commerce, pharmacuetical, and aerospace.

"We are diversifying our clientele in these segments and also taking steps to secure more US and Europe clientele to complement our existing Japanese clientele," he said.

Lee said Tasco, which is allocating RM60 million for capital expenditure (capex) for FY15, will look into merger and acquisitions if opportunities arise.

"We never shut our door, we will continue to look for opportunities," he said, adding that nothing has been firmed.
Lee said the capex will be used for the purpose of expanding its trucks and warehouse.

At the moment, he said the company's fleet size is 250 units including prime movers and trucks.

Lee said Tasco is using RM30 million of its capex for the contruction of a warehouse in Port of Tanjung Pelepas (PTP), which is currently under construction and expected to be operational in January next year.

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