Friday 29 Mar 2024
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KUALA LUMPUR (Feb 28): Cycle & Carriage Bintang Bhd recorded a net loss of RM18.49 million or 18.35 sen per share in its fourth quarter ended Dec 31, 2017 (4QFY17), giving the group its first ever annual net loss of RM12.47 million since its listing 18 years ago.

Comparatively, the group had booked a net profit of RM1.64 million or 1.63 sen per share in its previous corresponding quarter and a full year net profit of RM38.41 million.

The quarterly net loss had been the result of higher losses from its retail operations and an unprecedented flood in Penang last year, which is subject to compensation claims from insurers.

Revenue for the quarter, however, had risen 3.3% to RM380.34 million from RM368.21 million in the previous year’s corresponding quarter.

For the full financial year ended Dec 31, 2017 (FY17), Cycle & Carriage saw revenue decline 4.46% to RM1.42 billion from RM1.48 billion in FY16 as vehicle sales were down by 10%.

“Intense competition led to significant reductions in unit sales and earnings,” the group said in a filing with Bursa Malaysia today, adding that margins had declined and operating expenses had risen throughout the course of FY17.

Demand for key models of Mercedes-Benz saw a shift in the model mix from S-Class to the lower margin C, GLA and GLC-Classes, while demand for the new E-Class complete knock down (CKD) was below expectations, the group added.

“Trading conditions are likely to remain challenging in the year ahead as the current uncertain economic environment is expected to continue,” said Cycle & Carriage chairman Haslam Preeston.

He added that steps are being taken to enhance the group’s profitability over the medium term, with a commitment to required investment in people, systems and sites.

As such, the board did not recommend a final dividend during the quarter under review, compared with the five sen dividend declared in the previous year.

Cycle & Carriage’s share price has been on decline since early 2016 from the high of RM3.80 to the recent low of RM1.99. The stock fell four sen or 1.9% at RM2.06 today, leaving the group with a market capitalisation of RM207.53 million.

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