PETALING JAYA: Autoris Group Holdings Bhd is proposing to diversify into moneylending and related activities, after initially aborting the exercise.
In a filing with Bursa Malaysia yesterday, the company, primarily involved in providing loss adjusting services for motor and non-motor segments, said the diversification is part of the group’s on going effort to seek new business opportunities to expand its income stream.
“The proposed diversification is in line with the group’s objective to seek new viable business opportunities and additional income sources.”
Autoris said the diversification will improve its financial performance and contribute to its future growth, as well as enhance shareholder value in the long run.
“Through the proposed diversification, the group will be able to diversify its business risks and reduce the dependency on the existing loss-adjusting business segment and the technical and administrative support services business segment.”
In March, Autoris had said it was aborting its proposed diversification into moneylending and related activities, after reconsidering the additional capital and resources required.
“For avoidance of doubt, the group will continue to undertake the moneylending and related business activities through wholly owned subsidiary Fui Lian Credit & Leasing Sdn Bhd, but does not anticipate the moneylending and related business activities to contribute more than 25% of the total net profits of the group or cause a diversion of more than 25% of the total net assets of the group at this juncture,” it said.
In its filing yesterday, the company said it believed that it is a timely opportunity for the group to venture into the moneylending and related activities segment, “riding on the outlook of the lending market in Malaysia”.
“There are borrowers who may not have access to credit facilities from banks due to strict lending requirements imposed on them or borrowers who require faster financing compared to the longer processing time imposed by banks.
“In view of this, the board believes that the group can grow the moneylending and related activities segment after considering the demands from individuals and businesses for financing from non-bank financial service providers for purposes such as personal financing, business start-up and expansion, and project financing.”
