PETALING JAYA (Dec 3): With an order book of RM116 million as at last September, Signature International Bhd expects a weaker performance in its financial year ending June 30, 2019 (FY19), compared to the previous financial year.

The kitchen furniture maker does not see signs of the weak property development market abating and expects fewer large projects to benefit the group,  Signature International group managing director Tan Kee Choong said after its AGM today. 

“Based on the order book, FY19 revenue would be lower than FY18,” Tan told reporters after the group’s annual general meeting today. The group’s FY18 orderbook stood at around RM200 million, Tan said.

Although margins have eroded by about 3% to 5% year-on-year in FY18, Tan is confident that the group can maintain these margins in FY19. The group’s cost engineering’s measures have shortened the supply chain and reduced cost of goods sold, he shared.

Signature International is aiming to expand its retail operations in Malaysia in FY19, with the target launch of four new showrooms. It will also be diversifying its product offerings with the launch of new living room furniture products within the first quarter of 2019.

Separately, the group is continuing to seek opportunities across Asean. Talks are ongoing with partners in Vietnam and Cambodia to bid for projects there, while the group is also in discussions with a potential partner in the Philippines, Tan shared.