Loxley eyes 30percent surge in 2013 revenue
The Loxley conglomerate has set its 2013 revenue target at Bt18 billion, growth of 30 per cent over last year's figure, with expectation of a 25-per-cent increase in net profit.Loxley president Dhongchai Lamsam said the company last year recorded revenue of Bt14 billion, with net profit growing almost 80 per cent to Bt526 million. The major revenue drivers were information and communications technology (ICT) projects, including telecom business, as well as utilities and mega-projects such as public transport.
It is forecast that these businesses will contribute about 70 per cent of Loxley's total revenue, with the rest generated by trading and service businesses.
The expected increase in net profit of at least 25 per cent is based on an ability to maintain stable sales and administrative expenses.
Moreover, Loxley Group is preparing to raise capital through the equity market by selling 165 million shares to the public with the approximate value of Bt1 billion. This will strengthen the group's financial position, as the debt-to-equity ratio will decrease. The capital raised will be utilised in new project investments both in Thailand and overseas and for working capital, supporting the company's future business expansion.
Loxley's associates, especially the coated-steel and lubricant groups, have been generating both revenue and profit to the parent group, and they will also be key players helping Loxley achieve its 2013 target.
In the long term, ICT and telecom, utility projects and technology businesses will still be the major revenue contributor both from jobs worth Bt28 billion the company has high potential of winning and the government's Bt2.27-trillion transport-infrastructure plan. These include railway projects, consisting of double tracking, high-speed rail, and electric-train routes for urban transit.
Other government mega-projects Loxley has its eye on involve power systems, water management, and digital television.
Trading and service business emphasise expanding the customer base and new products to generate recurring income for Loxley. The target revenue for these sectors is Bt6 billion, up from last year's Bt4.8 billion. This target is broken down into Bt5 billion from trading business and Bt1 billion from service business.