1 August 2013
Malaysian AE Models Holdings Bhd has posted a hefty net loss of RM207.76 million for the year ended May 31, from a net profit of RM16.25 million a year earlier, on account of project delays including Kuala Lumpur International Airport 2 (klia2).
The company’s revenue dipped to RM464.07 million during the year compared to RM641.9 million a year ago.
“These were caused by the substantial increased in holding costs due to the delay in the installation works on certain major projects such as klia2 in Kuala Lumpur and Keriangau coal-fired power plant in Indonesia, which also caused billings to be delayed,” the company said in an announcement at the stock exchange yesterday.
The company has the task of building a RM62 million baggage handling and sortation systems for the proposed airport.
The Johor-based supplier of integrated materials handling solutions and automated systems added that the loss has been compounded by the delay in commencement of works for the Samur project in Sabah due to the delay in obtaining financing.
In addition to the above, the management also made provision for doubtful debts on balances outstanding for more than a year and impairment on property, plant and equipment, it pointed out.
Further on July 5, 2013, the company announced that a winding up order was served to its subsidiary Matromatic Handling Systems (M) Sdn Bhd (MHS) by the High Court of Malaya in Johor Bahru to wind up and liquidate the subsidiary.
“The circumstances leading to the said order against MHS was due to default of outstanding payment of S$35,030.14 (RM89,364),” it said.
Malaysian AE was put in the Practice Note No 17 category by the stock exchange because of the winding of one of its subsidiaries.
For the fourth-quarter ended May 31, the net loss recorded was at RM195.13 million compared to a net profit of RM6.05 million a year earlier.