THAI conglomerate Loxley Plc has set a target for growth in consolidated revenue of between 15 per cent and 20 per cent this year, Loxley president Suroj Lamsam said yesterday.
The group has yet to announce its 2017 financial performance. The company has completed a restructuring of its business group, resulting in five strategic business groups instead of the four groups that had been in place for more than 10 years. The new structure took effect last month.
The five strategic business groups comprise information technology, food service and distribution, energy, network solutions, and services.
The IT business expects annual revenue growth of between 15 and 20 per cent this year, from average annual revenue of between Bt3 bil-lion and Bt3.2 billion. For the food service and distribution business, revenue growth in the same range is expected, from average annual revenue of between Bt3.2 billion and Bt3.5 billion.
For the services business, revenue growth is estimated at 30 per cent this year, from average annual revenue of Bt2 billion, while that of the energy business is expected at between 12 and 15 per cent, from average annual revenue of Bt1.5 billion.
The network solutions business is projected to see revenue growth of 12 to 15 per cent this year, from average annual revenue of Bt4 billion.
Suroj added that all business units would see growth, especially the services business.
The services business includes total security solutions. Currently, 70 per cent of the group's revenue is contributed by state projects. Suroj said that the group has targeted reducing the revenue contribution from the state sector to 40 per cent over the next three to five years in order to ensure the group's stable revenue stream in the long term.
He added that this move was aimed at avoiding the uncertainties that can arise from a concentration of business in state projects. However, this does not mean the group would no longer give importance to state projects. Instead, it would selectively focus on those state projects that look for bidders that can offer quality products, rather than contend with a selection procedure that is skewed to a focus on low prices.