London Biscuits bucks trend

PETALING JAYA: London Biscuits Bhd bucked the trend as its share price shot up after falling into the Practice Note 17 (PN17) category.

The company closed seven sen, or 43.8% higher, at 23 sen yesterday, traded on a volume of 110 million shares.

London Biscuits has defaulted on payments amounting to RM9.83mil to Bank of Nova Scotia Bhd on May 10.

In a Bursa Malaysia filing, London Biscuits said the failure to pay was due to cash-flow constraints.

As of March 31, 2019, London Biscuits was in a negative cash position of RM15.17mil.

In comparison, the company had cash and cash equivalents amounting to RM50.75mil a year ago.

London Biscuits posted a net profit of RM10.87mil for the first half of the financial year ending Sept 30, 2019 (FY19), which doubled from the net profit during the same period of the previous financial year.

This was on the back of increased sales, which generated a revenue of RM230.62mil for the first half of FY19.