CEO Morning Brief

FSBM Holdings' PN17 Status to be Uplifted on Friday

Publish date: Fri, 21 Jun 2024, 10:23 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 20): Information technology services provider FSBM Holdings Bhd (KL:FSBM) will exit the stock exchange's Practice Note 17 (PN17) financially distressed category on Friday.

In a statement on Thursday, Bursa Securities said FSBM has regularised its financial condition and no longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market listing requirements of Bursa Malaysia.

The regulator, however, stressed that it will continue to monitor the progress of PN17 and Guidance Note 3 companies in respect of their compliance with the Main Market and ACE Market listing requirements.

FSBM slipped into PN17 status on Dec 30, 2019 after its external auditor Moore Stephens PLT expressed a disclaimer of opinion on its audited financial statements for the financial year ended June 30, 2018 (FY2018) as the auditor could not obtain enough appropriate evidence to provide a basis for an audit opinion.

Moore Stephens also noted the FSBM's financial statements were prepared on the assumption that the group would continue to operate as a going concern, in the face of it incurring a net loss of RM4.66 million for FY2018.

The group changed its financial year end from June 30 to Dec 31 in 2019. For the financial year ended Dec 31, 2023, FSBM posted a smaller net profit of RM1.94 million compared with RM4.42 million in the previous year, due to lower other income. Revenue rose 2.6% to RM12.84 million from RM12.51 million in FY2022. There were no dividends paid during the financial period under review.

FSBM shares closed up half a sen or 1.35% at 37.5 sen on Thursday, giving the group a market capitalisation of RM182.95 million. Its share price has risen 17.2% so far this year.

Source: TheEdge - 21 Jun 2024

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