London Biscuits sees revaluation gain of RM15.96m for FY14

by **Cals** Wed 27 Aug 2014, 23:22

Business & Markets 2014

Written by by Liew Jia Teng

Wednesday, 27 August 2014 21:58

KUALA LUMPUR: Confectionary London Biscuits Bhd, which has carried out revaluation exercise on its 26 properties in Malaysia and Hong Kong, will see a revaluation surplus of RM15.96 million to be reflected in their upcoming quarterly results for the quarter ended June 30.

In a filing with Bursa Malaysia yesterday, London Biscuits said the board had approved the incorporation of the revaluation surplus, net of deferred tax, of RM15.96 million in the consolidated financial statement for financial year ended June 30, 2014 (FY14).

London Biscuits carried out the revaluation exercise on the company and its subsidiaries’ property, plant and equipment and investment properties.

Of the 26 properties, 15 are directly owned by London Biscuit, two are owned by Kinos Food Industries (M) Sdn Bhd, while another nine properties are owned by Khee San Food Industries Sdn Bhd. Both Kinos Food Industries and Khee San Food Industries are wholly-owned by London Biscuits.

The revaluation resulted in a surplus of RM13.094 million that will be attributable to the equity holders of the company and represents an increase of 3.94% of the unaudited net asset value as at June 30, 2014 of London Biscuits.

The net assets per share of the group increased from RM2.03 to RM2.11 per share as at end-FY14.

It is worth noting that London Biscuits generated a net profit of RM12.627 million and RM11.092 million in FY13 and FY12 respectively.

The revaluation surplus of RM15.96 would be a big boost to the confectionary’s earnings for FY14.

For the first nine months ended March 31, 2014 (9M FY14), the group’s net profit stood at RM11.141 million.

London Biscuits said the revaluation exercise was conducted for corporate accounting purposes, in accordance with Malaysian Financial Reporting Standards and Asset Valuation Guidelines issued under Section 377 of the Capital Markets and Services Act 2007.

The valuation of the properties in Malaysia was conducted by Messrs. Pullprop Property Consultants, whilst the valuation in Hong Kong was conducted by Messrs DTZ Debenham Tie Leung Ltd.

The date of the valuation report for the properties situated in Malaysia was dated June 30, 2014, whilst the date of valuation report for the one in Hong Kong was dated July 18, 2014.
ENDS