KUALA LUMPUR: Berjaya Corp Bhd (BCorp) registered a bigger net loss for its fourth quarter ended April  (4QFY15) of RM274.97 million, compared with RM250.45 million a year ago, due to the non-cash impairment in value of goodwill relating to the gaming cash-generating units of RM442.23 million. Revenue for the quarter also dipped 5.93% to RM2.33 billion from RM2.47 billion in 4QFY14, due to the de-consolidation of revenue from Berjaya Auto Bhd from Dec 1, 2014, its filing with Bursa Malaysia yesterday showed.

Nonetheless, BCorp saw a net profit of RM861.8 million in FY15 ended April, compared to a net loss of RM148.92 million in FY14, mainly due to higher profit from its motor distribution business, and restaurants and cafes business, the latter primarily from improved results of Berjaya Starbucks.

Revenue for FY15 was up 9.96% to RM9.6 billion from RM8.73 billion a year ago, mainly on the consolidation of revenue from motor distribution segment HR Owen’s 12-month results against the 6-month consolidated results in the previous financial year. It also recommended a final 1% single-tier dividend per share for the approval of shareholders at the coming annual general meeting.

Moving forward, the group said that given the current economic outlook, FY16 is expected to be a challenging one.

In a separate filing, the group has proposed the disposal of 100% equity interest in Berjaya Environmental Engineering (Foshan) Co Ltd. BCorp on June 30 this year entered into a share transfer agreement with Foshan City Nanhai Grandblue Solid Waste Treatment Holding Co Ltd for the disposal of its subsidiary for 126.75 million yuan cash (RM76.68 million).

“The proceeds from the proposed disposal will be utilised for working capital by BCorp. There are no liabilities to be assumed by the purchaser pursuant to the proposed disposal. The proposed disposal is expected to be completed by 3Q15. 

BCorp (fundamental: 0.9; valuation: 2) closed 0.5 sen higher at 41 sen with a market capitalisation of RM1.68 billion. 

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This article first appeared in The Edge Financial Daily, on July 1, 2015.