CEO Morning Brief

Auditor Again Raises Doubts Over Sealink’s Going Concern Ability

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Publish date: Thu, 13 Apr 2023, 08:41 AM
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TheEdge CEO Morning Brief
Auditor raises doubts over Sealink’s going concern for second financial year

KUALA LUMPUR (April 12): Sealink International Bhd’s auditor Messrs Grant Thornton Malaysia PLT has issued an audit opinion with a material uncertainty related to the company’s ability to continue as a going concern.

This is the second time the external auditor raises its doubt on the marine support vessel operator’s future prospects.

The auditor drew attention to the company’s net loss of RM20.18 million for the financial year ended Dec 31, 2022 (FY2022) and the total current liabilities which exceeded total current assets by RM49.9 million.

“These events or conditions indicate the existence of a material uncertainty which may cast doubt about the group’s ability to continue as [a] going concern.

“The ability of the group to continue as a going concern is dependent on attaining future profitable operations of the group and the continued financial support from a major corporate shareholder of the company,” said the auditor in a bourse filing on Wednesday (April 12).

For FY2022, Sealink’s net loss narrowed to RM20.17 million from RM65.37 million. Annual revenue nearly doubled to RM65.3 million from RM37.95 million buoyed by higher vessel utilisation.

Sealink said it looks forward to securing more new charter in FY2023. “These will augment our business and operational resilience and help us deliver projects in line with our customers’ needs and expectations,” it added.

The company’s accumulated losses ballooned to RM179.87 million as at end-2022.

Sealink’s share price closed up half a sen or 4.35% at 12 sen on a volume of 8.92 million shares on Wednesday, valuing the group at RM60 million.

Source: TheEdge - 13 Apr 2023

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