Vortex gets authority's greenlight to operate offshore money-broking business

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KUALA LUMPUR (July 16): Vortex Consolidated Bhd, formerly known as SKH Consortium Bhd, announced it has been granted approval from the Labuan Financial Services Authority (LFSA) to carry out its money-broking business in Labuan. 

Vortex told the local exchange that it received a letter of approval from the LFSA today.

The company also said the approval also carries with it the usual conditions imposed on licence holders. 

In April, Vortex purchased a firm with a money-lending licence, Valhalla Holdings Sdn Bhd, for RM2 million, as part of its plan to diversify its business. Valhalla is the holding company of Valhalla Capital Sdn Bhd, which obtained its money-lending licence from the government for a two-year period ending Oct 31, 2020.

Vortex previously said it wanted to diversify its business to reduce reliance on its existing business in the information and communications technology (ICT) and construction sectors. It also said it is planning to diversify into the financial institution and services (FI) business, through incorporation of new subsidiaries, with a team of industry professionals on board.

In its financial year ended March 31, 2019 (FY19), Vortex's net profit fell 62.78% to RM287,000 from RM771,000 — mainly due to higher operating costs — despite revenue inching up to RM156.33 million from RM155.09 million, on stronger contribution from its IT and ICT divisions. 

Shares of Vortex closed up half a sen or 2.63% at 19.5 sen today, giving it a market capitalisation of RM78.54 million. The counter saw some 10.10 million shares done.