The Board is recommending a final dividend of 10 sen per share

The Group has undertaken a review of its business processes
and human resource requirements in light of the new operating
environment. A rationalisation of the business units has begun,
and the implementation of a voluntary staff separation scheme
has resulted in a reduction of over 100 staff at a cost of
RM2.8 million.
In November, the Company announced that it had reached an
agreement with Jardine Cycle & Carriage Limited (formerly known
as Cycle & Carriage Limited), one of its substantial shareholders,
to acquire the remaining 70% of Cycle & Carriage (Malaysia)
Sdn Bhd (“CCM”), our multi-franchised retail dealership
associate, subject to Foreign Investment Committee’s approval.
The approval was obtained on 25 February 2004 and the
acquisition was completed on 23 March 2004. Following
completion, CCM becomes a wholly owned subsidiary and
will allow the Group to diversify its revenue base through its
representation of other motor vehicle brands.
During the year, the Company agreed to sell a piece of freehold
property at Batu Pahat, Johor at a price of RM2.0 million.
The profit on disposal of RM0.6 million has been recognised
on completion of the deal in February 2004.
Board Changes
Datuk Mohamad Hasan resigned as Managing Director on 10
March 2004 following his decision to actively go into politics.
Mr Steven Foster, the Director of Operations, has been appointed
to succeed Datuk Mohamad. The Board would like to take this
opportunity to express our appreciation for Datuk Mohamad’s
valuable contribution to the Group during his 10 years with us
and we wish him well in his future undertakings.
Chairman’s Statement
Datuk Hassan Abas decided to step down as Deputy Chairman
of the Board on 10 March 2004 and the role taken over by
Dato’ Khalid Ismail. The Board wishes to thank Datuk Hassan
for his contribution and is pleased that he has agreed to continue
as a Director.
The Board wish to affirm its commitments to adhere to good
corporate governance and will always work towards enhancing
the standard of its duties.
Acknowledgement
We will continue to rely on the invaluable support of our
customers, suppliers, dealers and business associates.
This, together with the continued dedication and commitment
from employees, should ensure we are more than prepared to
meet the challenges ahead.
Prospects
The business environment is expected to remain highly
competitive in 2004. The Group’s prospects will be influenced by
the consumers’ response to the new vehicle duty structure as
well as the relative weakness of the US dollar, to which the
Ringgit is pegged, against the Euro and Japanese Yen.
Tan Sri Abdul Halim bin Ali
Chairman
15
Cycle & Carriage Bintang Berhad
Annual Report 2003