Friday 29 Mar 2024
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KUALA LUMPUR (Sept 28): Takaso Resources Bhd sank further into the red in its fourth quarter ended July 31, 2015 (4QFY15) after reporting a net loss of RM4.88 million compared to a net loss of RM3.01 million in 4QFY14.

On a cumulative full year basis, net losses for the financial year ended July 31, 2015 widened to RM7.99 million from RM5.95 million in the previous year.

"The increase was mainly due to additional impairment loss on plant and machinery of RM1.5 million and impairment loss on receivables of RM820,000 during the current quarter and cumulative period under review compared with the corresponding quarter and cumulative period ended July 31, 2014," said Takaso in a filing with Bursa Malaysia today.

Revenue contracted 20% to RM6.35 million from RM7.94 million previously due to the slowdown in its computer accessories business.

Full year revenue was weaker at RM36.76 million, down 2.1% from RM37.56 million a year ago.

The company explained that the lower revenue in this financial year was caused by a slowdown in cathode ray tube glass business and trading in consumable products despite improvements in its electrical and mechanical products and computer accessories segment.  

Consumer product manufacturer Takaso acknowledged that the company has been facing challenges in its core business of manufacturing and marketing of condoms and baby products as raw material prices and operational cost rose over the last few years.

Takaso added that to improve its financial performance it has diversified its consumer product manufacturing business to include construction and property development business as well.

The company said that it had entered into a conditional joint venture agreement to undertake a proposed mixed development project in Kuantan.

It also accepted a conditional letter of offer to acquire 51% equity interest to undertake a proposed residential or mixed development project in Jalan Yap Kwan Seng on top of the conditional sale and purchase agreement to acquire land in Melaka to be developed into a mixed development project.  

"The group is also making efforts to source and negotiate for new opportunities for the future construction and property development business. With those efforts undertaken by the group, our management is of the opinion that the prospects of the group are expected to be positive in the future," said Takaso.

The counter closed at 49.5 sen today, down 1% or 0.5 sen from the previous trading day.

(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.)

 

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