Vizione's quarterly loss widens on impairment of financial assets, higher finance cost

• Vizione said the latest quarterly loss was mainly caused by the impairment of financial assets amounting to RM47.61 million, representing 84% of the total loss for the quarter.

KUALA LUMPUR (July 28): Construction outfit Vizione Holdings Bhd has reported a net loss of RM58.86 million for the sixth quarter ended May 31, 2023 (6QFY2023) on revenue of RM58.48 million.

There are no comparative figures as the group changed its financial year end from Nov 30, 2022 to May 31, 2023. Hence, the financial statements for the current period were prepared for 18 months from Dec 1, 2022 to May 31, 2023, the group said in a bourse filing on Friday (July 28).

Vizione said the latest quarterly loss was mainly caused by the impairment of financial assets amounting to RM47.61 million, representing 84% of the total loss for the quarter.

The net loss for 6QFY2023 widened almost 10-fold when compared with the preceding quarter's loss of RM5.36 million. Revenue also dropped from RM77.61 million in 5QFY2023.

Vizione said the group suffered an operation loss of RM5.73 million during the quarter owing to an increase in finance cost arising from a spike in the base lending rate by banking institutions and escalating cost of labour and material for ongoing projects.

For the full 18-month financial period, the group recorded a total revenue of RM391.47 million, with net losses amounting to RM88.13 million.

“The group has been facing numerous challenges in the current construction industry conditions which resulted in financial loss. The construction industry’s recovery process after the Covid-19 pandemic is slower compared with other industries due to the rapidly rising building material cost, increasing minimum wages of labour, rising interest rates, inflationary pressures and rapid descent in the ringgit,” the group said in its filing.

Vizione shares closed unchanged at half a sen, valuing the group at RM92.15 million.