1.	Review of Performance

The Group recorded a slightly lower turnover of RM14.07 million in this quarter as compared to RM14.08 million in the previous year’s corresponding quarter. 

The Group registered a profit before tax of RM0.28 million for the current quarter as compared to a profit before tax of RM0.60 million for the corresponding quarter of the preceding year. The decrease in the Group’s profit before tax was mainly due to lower profit margin arising from higher operating costs incurred especially raw materials and transportation.

2.	Variation of Results Against Preceding Quarter

The Group posted a revenue of RM14.07 million for the current quarter, a decrease of 2.97% as compared to RM14.50 million in the preceding quarter. However, the profit before tax for the quarter under review increased to RM0.28 million as compared to the preceding quarter profit before tax of RM0.09 million. The aforesaid favorable results for the current quarter were mainly due to a slight increment of selling price.

 
3.	Current Year Prospects

The Directors are optimistic that there will be an improvement in the Group’s performance for the current financial year as the Government commences the implementation of the 9th Malaysian Plan which would see an increase in public spending on infrastructure from 2006 onwards.

4.	Profit Forecast

Not applicable for the current financial year as no profit forecast was published. 

5.	Tax Expense

	30 June 2006	30 June 2005	
	RM’000	RM’000	
Tax expense			
- Current period 
	110
	195
	
	110	195	

                 The Group’s effective tax rate is higher than the prima facie tax rate due to the current period losses incurred by some of its subsidiaries.

6.         Quoted Investments

	As at 30 June 2006
	As at 30 June 2005
	
	Book 
value	Market
 Value	Book 
value	Market Value	
	RM’000	RM’000	RM’000	RM’000	
Total quoted investments	4	3	4	3	

7.         Status of Corporate Proposals

            There were no corporate proposals announced but not completed as at the date of this report.

8.		Borrowings 

         The Group’s short term borrowings as at 30 June 2006 is as follow:
	RM’000	
Bankers’ acceptances - Unsecured	380	

	The above borrowings are denominated in local currency.

9.      Off Balance Sheet Financial Instruments

There were no financial instruments with off balance sheet risks as at the date of this report.

10.	Dividends

No interim dividend has been declared for the current financial period to date.	
.	

 11.    Changes in Material Litigation

No material litigation for the period under review.  

12.	Earnings Per Share

Basic Earnings Per Share
	
Current  Quarter
30/06/2006	
Net profit attributable to ordinary equity holders of the parent (RM’000)
	
171	
Number of ordinary shares issued (‘000)
	60,021	
Weighted average number of ordinary shares issued (‘000)
	60,021	
Basic Earnings Per Share (sen)	0.28	

Fully Diluted Earnings Per Share

The assumed conversion of the options under the Executive’s Share Option Scheme (ESOS) would be anti-dilutive as the exercise price of the ESOS of the Company is higher than the average market price of the share. Hence the basic and fully diluted earning per share are the same.