SMR Technologies Chairman & CEO Dato’ Dr R Palan discusses the following questions:
You’ve been a trainer all your life. At what point did you realise the necessity to institutionalise your work into a corporate structure
Discuss the path to SMR – and then the path to becoming a PLC
BUSINESS PLAN – REVENUE STREAMS
Discussion on each — and which is the biggest contributor to group revenue – and whether overdependence on one or the other Professional HR solutions (events/consulting/outsourcing/search)
Education (National Capacity Building: english language, vocational skills, tertiaryeducation)
OPERATIONS
Challenges: people / fee and pricing pressure / adoption / preference for foreign professionals and not local?
Challenges: developers / upgrades? –
Challenges: dealing with a government which has back-shelved English as a means of learning science and maths
Positioning? What is SMR? A software firm? Event manager? A university / education provider? A trainer? Clarity of focus
Whether the street / investment community values SMR accordingly – Client breakdown: GLC / Private sector
GROWTH – EXPANSION
With most — 95% — of group revenue coming from OCHR (Outsourcing, consulting and HR activities) where is the next leg of growth coming from
Tertiary education: ISSUES
CORPORATE – PLC – EXERCISES
Purchase of 70%-stake in In-Fusion Education Sdn Bhd – RM27.5 mln – Reasons for purchase
Loss after taxation of RM4.9 mln with a BV of RM14 mln at FYE Dec 2011. .. Explain? “operating issues”?
Many of the 1,400 students are government sponsored … PTPTN – issues
FINANCIALS
Reasons for big revenue increase in FY2011 and in FY12
SMRT: listed since 2005 and remained on ACE Market since then. Intention to stay “junior” — big fish in small pond — or larger plans to graduate to the Main Market
Liquidity – coverage issues – Vastly undervalued: 3.2x PE