KUALA LUMPUR: Seacera Group Bhd posted a net loss of RM102.15mil for the quarter ended March 31, 2019, dragged by impairment of plant, machinery, equipment from the shutdown of its tiles factory of RM23mil, as well as impairment from its subsidiary, SPAZ Sdn Bhd of RM43mil.
In March 2019, the Practice Note 17 (PN17) company disposed of a 60% stake in SPAZ.
In a filing with Bursa Malaysia yesterday, the tile maker said the group’s net profit was also impacted by the recognition of liability on corporate guarantee in favour of SPAZ of RM31mil as demanded by SME Bank.
Meanwhile, the group recorded a revenue of RM783,000 for the quarter in review.
For the cumulative 15 months, Seacera posted a net loss of RM151.95mil, or 32.51 sen per share, on revenue of RM24.09mil.
Due to the change of financial year end from Dec 31, 2018 to June 30, 2019, the figures for the quarter ended March 31, 2019 are in respect of the fifth quarter and, accordingly, there are no comparative figures for the preceding year corresponding quarter, the group said.
Moving forward, Seacera expects this year to be challenging due to its holding’s company PN17 status and insufficient cashflow to support the operations and repayment of its banking facilities.
However, it said would formulate strategies to propose the regularisation plan to uplift PN17 status within the 12-month period as required under the listing requirements.
In April this year, the group became an affected listed issuer under PN17 under the Main Market Listing Requirements of Bursa Malaysia Securities.
“In addition, there are uncertainties of local and global economies particularly a slowdown in property development and construction industries, lower consumer demand and the US-China trade war,” the group added.