It has seen some positive results in its financial performance, with the group’s diversification strategy instead of just relying on providing analytical services in human health and plant science.
The company which has accumulated losses of some rm8 million has added new divisions in pathology lab services and screening services in the 1HFY2014 besides undertaking moderate expansion plans. It also plans to venture into diagnostic services in 2015 to broaden its income.
The company had not been doing well as reflected by its financial results especially the net losses made in the last two financial years.
However it started to return to the black in 4QFY2014 ended June 30 2014 and the latest 1QFY2015 ended Sept 30 2014 with net profit of rm234000 and rm497000 respectively compared with the net losses of rm968000 and rm1.73 million in the previous corresponding periods. For FY2014 its net losses shrank to rm4.3 million from rm9 million previously.
Its official said two consecutive quarters with profits and is expected to continue into the foreseeable future as it recognizes income on the completion of project milestones.
The company was focusing on the R&D works, which was its core capabilities from the proceeds raised from its IPO.
It has planned out a business strategy by capitalizing on opportunities to bring itself back on track. The company that used to solely on analytical services as the main source of revenue is diversifying into pathology lab, screening services and will start diagnostic services into 2015.
Analytical services remains the main contributor to the company’s performance, accounting for 80% to the group’s total revenue. It expects the revenue contribution in 2017 to be analytical 67%, pathology lab (20%), screening 8% and diagnostic 5%.
One of the customers served by MGRC is FELDA Wellness Project, which requires the company to specialize in its agriculture sequencing and analytical works.
Its order book value stood at rm25 million while sales pipeline is rm12 million.