Friday 29 Mar 2024
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KUALA LUMPUR (July 2): Computer Forms Malaysia Bhd (CFM) said its wholly-owned unit CFM Printing & Stationery Sdn Bhd will cease to print and produce exercise books, as it seeks to mitigate the negative impact of the losses in the printing and production segment.

Based on the existing market demand, CFM said the printing and production segment had sustained consecutive losses in the past few years, and is expected to continue incurring losses if it maintains the operations.

"The exercise book printing section is not expected to be able to turn around in the near future due to the reducing demand for exercise books from schools, coupled with stiff competition from other much bigger printing companies," said CFM in a filing with Bursa Malaysia today.

CFM, which has interests in printing, packaging and business property management, said the decision to discontinue the printing of exercise books is in the best interest of its shareholders.

The decision, it added, will result in a total cost of RM1.7 million in the financial year ended May 31, 2019 (FY19), of which RM500,000 will be a net impairment charge and RM1.2 million will be used to retrench staff.

Going forward, CFM said it will focus on paper converting and trading business.

Listed on the local bourse since 1990, CFM shares were untraded today. The stock was last traded at RM1.06, with a market capitalisation of RM43.46 million.

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