High-5 1Q net loss widens to RM12.97m

by **Cals** Tue 01 Apr 2014, 13:50

Business & Markets 2014

Written by Sulhi Azman of theedgemalaysia.com

Tuesday, 01 April 2014 08:40

KUALA LUMPUR: High-5 Conglomerate Bhd, formerly Silver Bird Group Bhd, saw its first quarter ended Jan 31, 2014 (1QFY14) net loss widen to RM12.97 million from RM10.69 million a year ago, on lower revenue mainly due to the restructuring of the group’s distribution network and reduction in production level.

The loss-making bread and confectionery maker reported a 13% decline in revenue to RM19.24 million in 1QFY14 from RM22.17 million previously.

In a filing with Bursa Malaysia yesterday, High-5 said on a segmental basis, both Malaysia and Singapore operations posted declining revenue and higher losses in 1QFY14.

Domestic operations for the quarter under review contributed RM13.77 million to total revenue, down from RM16.47 million a year ago, while contribution from operations in Singapore fell by 4% to RM5.47 million from RM5.7 million earlier.

No interim dividend was declared for the quarter.

The group said it is optimistic that through several measures and a proposed regularisation plan, it will be able to continue its improvement trend and return to profitability.

“Running parallel with the revised proposed regularisation plan, the board has been implementing measures to improve both the operations, in terms of improving sales performance and production efficiency, and the group’s financial performance with significant reductions in expenses and losses as well.

“The board is optimistic that with the approval of the revised proposed regularisation plan, which includes the raising of funds for much needed working capital, the group will be better able to continue with its improvement trend and return to profitability,” said High-5.

Among the proposals in the regularisation plan submitted to Bursa Malaysia on Feb 21 this year are capital reduction, debt settlement, consolidation, rights issue with warrants and share premium reduction.

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High-5 was classified as a Practice Note 17 company on Feb 29, 2012 after its auditor expressed a disclaimer of opinion on the group’s audited accounts for FY11 and a default in payment by its major subsidiaries.

This article first appeared in The Edge Financial Daily, on April 1, 2014.