Brahim's closes sharply lower after triggering PN17

KUALA LUMPUR:  Brahim's Holdings Bhd's share price fell to an all-time low of 5.5 sen on Friday after the catering services company was classified as a Practice Note 17 company.

It closed at 11.5 sen, down nine sen or 44%, with 20.37 million shares done. 

The plunge saw RM21.26mil wiped out from its share price at the close of market, based on its shares out of 236.28 million shares.

On Thursday, Brahim's announced that it was a PN17 company after it had triggered the prescribed criteria under Paragraph 2.1 (a) of PN17. 

Based on the unaudited interim financial results for the fourth quarter ended Dec 31, 2018, the shareholders’ equity on a consolidated basis of less than RM40mil represented 25% or less of its issued capital. 

The company now has to regularise its financial condition within 12 months or face the prospects of being delisted.

In FY18, it posted net losses of RM116.05mil compared with losses of RM2.16mil in FY17. 

In Q4, it posted net losses of RM93.79mil compared with net losses of RM1.99mil due to impairment of goodwill of RM88.61mil. It only has cash of RM6.48mil.

Brahim's said the impairment on goodwill was recognised by the group in relation to its in-flight catering and related services segment of RM88.61mil in Q4 FY18.

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PN 17 , impairments , in-flight catering


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