PRG sinks back into the red on impairment losses

KUALA LUMPUR (March 24): PRG Holdings Bhd, which is involved in the manufacturing of webbings, furniture components and the property sector, posted a net loss of RM28.06 million for its fourth quarter ended Dec 31, 2020 (4QFY20) with a net loss of RM28.06 million, compared to a net profit of RM19.41 million in the immediate preceding quarter of 3QFY20.

This return to the red was mainly due to impairment losses on goodwill and other assets recognised in the current quarter. In addition, its 3QFY20 had recorded a one-off realisation of previously unrealised intercompany revenue, profits and interest income upon the disposal of its 60% stake in Premier De Muara Sdn Bhd (PDMSB).

Quarterly revenue fell 68.15% to RM35.69 million from RM112.04 million in 3QFY20, the group’s filing with Bursa Malaysia today showed. No dividend was declared.

Compared with the same quarter a year ago, the group has narrowed its net loss by 21.33% from RM35.66 million, though revenue fell 37.02% from RM56.67 million on lower revenue from the manufacturing segment, which saw lower sales of PVC related products.

For the full financial year (FY20), its net loss retreated to RM13.26 million from RM49.68 million a year earlier — again due to the abovementioned realisation of previously unrealised intercompany revenue, profits and interest income and lower impairment losses on assets recognised. Annual revenue jumped 48.73% to RM196.4 million from RM132.05 million.

Despite uncertainties in the market brought about by the Covid-19 pandemic, the group said it will endeavour to finalise and secure demand for its teak logs business, besides exploring other collaboration opportunities to expedite the sale of teak logs.

“Amid the economic slowdown, the group shall closely monitor and take the conservative steps to sustain the performance of the existing business ventures as well as continuing to explore and consider new ventures or business activities which are synergistic to the operations of the group,” PRG added.

PRG shares slid 3.5 sen or 14% to close at 21.5 sen today, valuing the group at RM92.42 million.

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