Friday 29 Mar 2024
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KUALA LUMPUR (Dec 3): YFG Bhd said today that it will see only a minimal impact to its topline from the termination of the Jesselton Residences Waterfront construction contract worth RM255.9 million by Palikota Sdn Bhd.

"It [the contract termination] will affect revenue, but the associated cost to that [contract] will cease [to be accounted for], so the impact is actually minimal," said the group's Deputy Head of Finance and Accounts Wilson Ang.

However, the impact on YFG's bottomline is uncertain, said Ang. He was speaking to reporters after the group's annual general meeting today.

"We have to wait until the hearing," he said.

YFG is set for an inter-parte injunction hearing on December 9. It was was granted an injunction by the KL High Court on Nov 26 to prevent Palikota from calling the performance bond of RM12.8 million from YFG's banker, United Overseas Bank (M) Bhd, until YFG's claim of breach of contract is heard and decided.

YFG had previously announced that it will sue Palikota for terminating the contract, which was awarded to its subsidiary YFG Trolka Sdn Bhd on Aug 1 last year.

At 2.45pm, YFG was up 0.5 sen or 7.7% to 7 sen, giving it a market capitalisation of RM42.63 million.

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