Friday 29 Mar 2024
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KUALA LUMPUR (Nov 25): Precision machine parts supplier Notion VTec Bhd fell into the red in its fourth financial quarter ended Sept 30, 2014 (4QFY14), posting a net loss of RM9.52 million from a net profit of RM296,000 a year ago, on impairment loss of RM9.83 million in its associate Alcyone Resources Ltd.

Revenue for 4QFY14 dropped 8% to RM55.32 million from RM60.18 million a year ago. Earnings per share (EPS) was 3.55 sen from 0.11 sen a year ago.

The poor quarterly results dragged full year ended Sept 30, 2014 (FY14) to a net loss of RM25.64 million compared with a net profit of RM20.09 million the previous year, while revenue dipped 10% to RM199.42 million from RM222.32 million in FY13.

EPS for FY14 was 9.56 sen from 7.49 sen in FY13.

Going forward, Notion VTec remains hopeful that it will return to “sustainable profitability” in FY15 and look for fresh opportunities in the new areas of investment.

“Management is focusing on getting better component pricing and more productivity and lower cost strategies to get the group back to reasonable profitability,” it said in a filing to Bursa Malaysia today.

Notion VTec owns 19.99% in Australia-listed Alcyone Resources, a silver mining company.

“For our investment in Alcyone Resources, we have to allow for impairment loss of RM9.8 million since the mining company has been put under receivership by one of its convertible note holder. Until the process of liquidation is complete, we cannot estimate any recoverable amount from this investment,” it said in a separate filing.

Notion Vtec added that it is prudent to provide for a total loss of its passive investment, which did not turn up to expectations mainly due to untimely shortfall of funding as well as a fall in silver prices.

To recap, Alcyone Resources was suspended from trading on March 17 after it failed to lodge its financial results for the six months ended Dec 31, 2013.

The group had announced that it plans to lodge and announce its results and proposed material fundraising transaction on or prior to Dec 31, which are expected to result in the lifting of the suspension on Jan 2.

Subsequently, Alcyone Resources had on Nov 17 announced that it had appointed Grant Sparks, Michael Owen and Simon Theobald as joint and several receivers and managers “to determine the future of the companies”.

For the financial year ended June 30, 2013 (FY13), Alcyone Resources saw its net loss widen to A$10.38 million from A$3.12 million a year ago, despite revenue doubling to A$20.69 million from A$10.53 million.

Shares of Notion VTec closed unchanged at 48.5 sen today, bringing its market capitalisation to RM130.11 million.
 

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