KUALA LUMPUR (June 25): Serba Dinamik Holdings Bhd, which announced earlier today the resignation of five independent directors, recorded a net profit of RM113.32 million for the quarter ended March 31, 2021 (5QFY21), contributed mainly by its operations and maintenance (O&M) segment.
There is no comparison for the corresponding quarter of the previous financial year, as the group had changed its financial year end to June 30, 2021, from Dec 31, 2020 on May 7.
Its latest quarterly revenue came in at RM1.38 billion.
The O&M segment accounted for 90% of its revenue for the quarter, amid the resilience and robust maintenance, repair and overhaul (MRO) and IRM activities in the Middle East region, namely UAE, Qatar and Oman, followed by Malaysia.
The balance its revenue was contributed by its engineering, procurement, construction and commissioning (EPCC) segment (7.2%), and the information, communication and technology (ICT) segment (2.2%), according to Serba Dinamik in a statement.
In terms of geography, the group said Malaysia remains its largest revenue contributor, providing RM409.31 million or 30% of its revenue for the quarter.
Regionally, the Middle East accounted for 64.9% of its revenue, followed by Southeast Asia (31.3%), and Central and South Asia (2.9%). The remainder of its revenue came from Tanzania and the UK at 0.6% and 0.3% respectively.
For the cumulative 15 months, the group posted total revenue of RM7.4 billion, and a net profit of RM744.61 million.
“Whilst our core revenue contributors remain to be the O&M and EPCC segments, we are aggressively growing our ICT business locally and globally.
“The Covid-19 pandemic and current Movement Control Order (MCO) has pushed the urgency for Serba to grow and explore strategic sectors of the economy,” said Serba Dinamik group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah.
He added that the group has been pursuing opportunities in non-oil and gas areas, including satellite broadband.
The group has also expanded into the US via the sponsoring of Data Knights Acquisition Corp, a special purpose acquisition company (SPAC).
“Through the SPAC sponsorship, we are confident to be in a good position to benefit from the potential returns as an early entrant. Concurrently, this venture provides an opportunity for the exposure to a larger pool of investors, especially for technology-related businesses,” said Mohd Abdul Karim.
Meanwhile, he said the group is doing its utmost to resolve its current issues, emphasising that it is business as usual for Serba Dinamik.
Serba Dinamik is in the midst of suing its former external auditor KPMG PLT, after the two fell into disputes over the latter raising red flags on the group's auditing issues recently. On Thursday, KPMG announced it has resigned as its auditor with immediate effect, following a lawsuit that Serba Dinamik filed against it alleging negligence, breach of contract and breach of statutory duty.
Serba Dinamik has said it would appoint Ernst & Young Advisory Services Sdn Bhd as an independent reviewer to look into the issues that KPMG raised, and that its board of directors would meet today to decide on whether or not to expand the scope of work to be undertaken by reviewer.
As of time of writing, it has yet to formalise the engagement or update on the outcome of the board's meeting today.
Meanwhile, of the five independent and non-exeucitive directors of the group who have resigned from the board, four cited differences of opinion with the company over its decision to take legal action against KPMG.
The five who resigned are — Rozilawati Basir, Sharifah Irina Syed Ahmad Radzi, Tengku Datuk Seri Hasmuddin Tengku Othman, Hasman Yusri Yusoff and Masleena Zaid, according to several Serba Dinamik bourse filings today.
Only Masleena, who was recently appointed to the board by the oil and gas services firm, cited "personal commitment" as the reason for her resignation.
Serba Dinamik fell 12.5 sen or 23.4% to a record low of 41 sen, giving the group a market capitalisation of RM1.53 billion.
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