Hotel operator Avillion's auditor flags going concern uncertainty

• In a filing with Bursa Malaysia, Avillion said the auditor, Baker Tilly Monteiro Heng PLT, has highlighted the group’s net loss of RM8.84 million and a negative cash position of RM8.96 million for FY2025, which raises significant doubt about its ability to continue as a going concern.

KUALA LUMPUR (July 31): Avillion Bhd (KL:AVI) on Thursday said it external auditor has flagged uncertainty over the hotel operator's ability to continue as a going concern in the group’s audited financial statements for the year ended March 31, 2025 (FY2025).

In a filing with Bursa Malaysia, Avillion said the auditor, Baker Tilly Monteiro Heng PLT, has highlighted the group’s net loss of RM8.84 million and a negative cash position of RM8.96 million for FY2025, which raises significant doubt about its ability to continue as a going concern.

“Our opinion is not modified in respect of this matter,” the auditor stated.

Baker Tilly highlighted that Avillion’s ability to remain viable depends on initiatives such as rolling out innovative and attractive packages to enhance hotel occupancy and revenue.

Other initiatives include the disposal of low-or non-yielding land bank, intensifying sales and marketing efforts to sell the remaining units from the current development project and completed properties, and continuous engagement with bankers for financial services.

If these initiatives are not undertaken, Baker Tilly said Avillion may be unable to realise its assets or settle liabilities in the normal course of business. In such a scenario, adjustments may be required to the financial statements, particularly in relation to the recoverability and classification of recorded assets and liabilities, it said.

Avillion, in the filing, said the group has already implemented some of these initiatives and remains committed to navigating the challenging operating environment.

The group affirmed that the financial statements have been appropriately prepared on a going concern basis, asserting that the group is able to realise its assets and discharge liabilities in the ordinary course of business.

Avillion shares closed up half a sen or 12.5% at 4.5 sen on Thursday, valuing the group at RM51 million.

Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.