Scan Associates focuses on cost cutting, operation streamlining

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PETALING JAYA (Jan 15): Scan Associates Bhd is focusing on cost cutting, and streamlining the ICT security solutions provider's operations to rejuvenate the company's financials.

Executive director Mak Siew Wei said Practice Note 17/ Guidance Note 3 (PN17/GN3) entity Scan was working closely with its adviser Mercury Securities Sdn Bhd to come up with a regularisation plan.

“If you look at the last quarter, just based on pure operation, we are making a slight profit. Of course, we have a lot of baggage to handle. But I do see improvement,” Mak told reporters, after Scan's annual general meeting here today.

In the first quarter ended Sept 30, 2016, Scan recorded a net loss of RM379,000, as compared to a net profit of RM47,000 a year earlier. Revenue decreased to RM1.95 million, from RM1.98 million.

Scan became a PN17/GN3 entity under Bursa Malaysia listing rules on on May 19, 2015. Scan said it had until May 18, 2016 to submit its regularisation plan to regulators.

At 5pm, Scan shares closed unchanged at five sen for a market value of RM10 million. The stock saw 310,000 shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)