KUALA LUMPUR: KAF-Seagroatt & Campbell Bhd, which is being taken over by KAF Investment Bank Bhd (KAFIB), posted net losses of RM797,000 in the fourth quarter ended May 31, 2015.
It said on Friday the net losses were in contrast to the earnings of RM1.37mil a year ago. Its revenue fell to RM12.20mil from RM12.71mil a year ago. Loss per share was 0.66 sen compared with earnings per share of 1.15 sen.
“The decrease in group's operating revenue was mainly due to the lower brokerage and management fees income generated by the stockbroking and asset management segments respectively,” KAF-Seagroatt & Campbell said.
When compared with the preceding quarter ended Feb 28, its total operating revenue of RM12.20mil was 32% higher from RM9.2mil.
KAF-Seagroatt & Campbell explained this was due to higher brokerage income received in Q4 as compared to Q3.
It reported before tax loss of RM480,000 compared with profit before tax of RM3.70mil in Q3 due to higher staff cost recorded in the current quarter as compared to the immediate preceding quarter.
It proposed a final dividend of 10 sen a share.
For the financial year ended May 31, 2015, KAF-Seagroatt & Campbell’s earnings fell 71.9% to RM4.19mil from RM14.93mil in FY14. Revenue was lower at RM42.93mil, down 15.4% from RM50.79mil.
Meanwhile, KAF share price surged 53 sen to end the day at RM2.61, just nine sen away from the RM2.70 per share takeover offer by KAFIB.
KAFIB is buying a 76.74% stake in KAF-Seagroatt & Campbell Bhd for RM248.64mil or RM2.70 a share. It would undertake a mandatory general offer (MGO) for the remaining stake at RM2.70 also.
The move will see KAFIB owning the stock-broking, fund management business and research.
On Thursday, KAFIB signed a conditional share sale agreement with the vendors Akka Sdn Bhd, Akka Holdings Sdn Bhd, Datuk Khatijah Ahmad and Thariq Usman Ahmad to acquire the 76.74% stake.
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