New Straits Times Online (16/10/2017) - KUALA LUMPUR: Innoprise Plantations Bhd (IPB) was named the Best Under Billion Company during Focus Malaysia's Best Under Billion Award ceremony held on 13th October 2017.

Based on such criteria as revenue and profit growth over the last 3 years, sustainability and governance etc, IPB emerged as the Overall Winner for 2016.

In addition IPB also won the Highest Revenue Growth and Highest Profit Growth Awards.

At RM41.34 million for its financial year 2016, IPB's pretax profit had registered a compound annual growth rate of 101.27 per cent over the last three years.

"IPB's future growth is still firmly on an ascending trajectory for the next many years premised on the expected annual double digit growth in FFB production due to the excellent age profile of overwhelmingly young mature and immature oil palms," Innoprise executive director Lim Fook Hin said after receiving the Awards on behalf of IPB.

"Oil extraction rate achieved over the last two years averaged 24.5 per cent , well above the national average of 20.2 per cent," added Lim.

IPB has planted 12,294 hectares of oil palms in a contiguous piece of land in Tawau, Sabah together with a 60 MT FFB/ hr palm oil mill.

About 10,686 hectares or 88 per cent of the plantings are mature of which only about 1,750 ha are in prime age and the balance young mature palms.

"Hence we are very confident of double digit FFB production growth for many years to come" opined Lim.

Furthermore IPB has since 2009 started large scale planting of TSH Wakuba clonal oil palms with proven high FFB and oil yield.

As about 20 per cent of the total area has been planted with clonal oil palms, this will accelerate future FFB production growth.

IPB's net debt has been dropping rapidly over the last 2 years and will likely fall to below RM25 million by end of 2017 giving a net gearing ratio of 8 per cent.

Cash flow wise the company is in a sweet spot as virtually all planting and development expenditure has been incurred and most infrastructure facilities for staff and employees completed.

This bodes well for future dividend pay-out.