KUALA LUMPUR (Sep 8): Roof tile maker and builder VTI Vintage Bhd expects to turn profitable by the first quarter of next year and shed its Practice Note 17 (PN17)company status in the same year, Managing Director Datuk Beh Hang Kong says.
The group fell into PN17 category in 2010. For the six months ended June 30, 2014, VTI Vintage’s net loss widened to RM3.74 million from RM1.45 million a year ago, as revenue fell 40% to RM4.1 million from RM6.87 million.
“Our current core business is in tile manufacturing and roofing. We’ll be moving away from that into construction projects. Our emphasis will be more on (clinching) bigger construction jobs,” Beh told reporters after the group’s extraordinary general meeting today.
Nevertheless, the group has no plans to do away with its tile and roofing business totally, he adds.
Beh says VTI Vintage is in the final stages of tendering for at least RM100 million worth of projects, adding that he is confident of securing some of these.
He adds that the projects are located in Klang Valley, Pahang and also Johor, and are mainly residential and commercial properties.
“We should be able to announce one or two projects this year,” says Beh.
Earlier at the meeting, VTI Vintage shareholders passed a motion to change the group’s name to ML Global Bhd.
Beh says the name change is done to create a new image for the group.
Meanwhile, Beh foresees synergies being created between VTI Vintage and its major shareholder LBS Bina Group Bhd, which holds a 21.9% stake in VTI Vintage.
“I think that there is a lot of potential synergies between the two groups and that’s what we’re riding on. Also, LBS Bina is a big player in the property development business and so, we might be able to create synergy in some construction work together,” he says.
LBS Bina Managing Director Datuk Seri Lim Hock San says it is “too early to say” whether LBS will acquire more shares in ML Global.
He says VTI Vintage’s image must first be improved to provide shareholders confidence towards the group’s new direction.