Thursday 28 Mar 2024
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KUALA LUMPUR (July 2): Parlo Bhd, formerly known as Cybertowers Bhd, said its wholly-owned unit Parlo Tours Sdn Bhd's profit guarantee for the financial year ended Dec 31, 2017 (FY17) fell short of RM1.26 million due to increased expenses.

A profit guarantee of RM4.8 million for FY17, according to the group's regularisation plan and as set out in its circular to shareholders dated Aug 3, 2017, was provided by Yap Fu Fah, the co-beneficiary owner of Thirty Keystone Sdn Bhd, a major shareholder of Parlo.

In a filing with Bursa Malaysia today, Parlo said the shortfall, due to higher expenses, was a result of staff cost, advertisement programmes and marketing, as well as trade fair expenses incurred specifically as part of Parlo Tours' efforts to promote new travel destinations in the People's Republic of China and Europe.

"As such, the increases were in-line with the future growth and direction of the group," said the former Guidance Note 3 company that is involved in the business of developing and operating an Internet-based automatic vehicle locating system using satellite and wireless telecommunication solutions.

Notwithstanding the shortfall, Parlo said Parlo Tours recorded an increase in gross profit of RM3.06 million in FY17 compared to FY16, and that its gross profit margin remained consistent at 11.8% for both financial years.

It said in accordance to the terms of the custodian or stakeholder agreement between Parlo, Yap, Thirty Keystone and the stakeholder (Malaysian Trustee Bhd), on Nov 15, 2017, the group will furnish Parlo Tours' FY16 and FY17 audited financial statements within three months of the statements being audited.

This means it will be out, at the latest, by Sept 27, 2018 as the financial statement for the FY17 was signed on June 28, 2018, the group said.

"The profit guarantor (Yap) is liable to the company to settle the shortfall within 14 business days from the date of notification or any other period as may be granted by Parlo," it added.

In the meantime, Parlo said Parlo Tours' FY16 audited profit after tax (PAT) of RM3.85 million met the profit guarantee of RM3.82 million.

The aggregate of the audited consolidated PAT of Parlo Tours for FY16 and FY17 would not be less than RM8.62 million, i.e. RM3.82 million for FY16 and RM4.8 million for FY17.

The group, which fell under the GN3 status on Oct 31, 2013, was lifted off the list on Jan 18 this year.

Its shares closed up half sen or 5% at 10.5 sen for a market capitalisation of RM38.22 million.

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