Remark :
The financial information comprises results from both continuing and discontinued operations of the Group. ECM Libra Investment Bank Berhad ("ECMLIB") and its subsidiaries are presented as a disposal group held for sale following the commitment of the Group, on 15 June 2012, to a conditional share purchase agreement for the proposed disposal by the Group of the entire equity interest in ECMLIB. The disposal was completed on 14 December 2012.
Financial information for the current year and current quarter ended 31 January 2013 included a loss on disposal of ECMLIB of RM68.65 million. Year to date profit before tax and profit after tax from operations was RM34.65 million and RM26.52 million respectively. Current quarter's profit before tax and profit after tax from operations was RM14.44 million and RM12.64 million respectively. After aggregating the loss on disposal of ECMLIB of RM68.65 million, the Group reported a loss after tax of RM42.13 million for the current year and loss after tax of RM56.01 million for the current quarter ended 31 January 2013.
Upon completion of the disposal of ECMLIB on 14 December 2012 ("the Disposal"), the Company is considered a PN17 company pursuant to Paragraph 8.04 and Paragraph 2.1(g) of Practice Note 17 ("PN17") of the Main Market Listing Requirement ("MMLR") of Bursa Malaysia Securities Berhad. The Company triggered Paragraph 2.1(g) of the PN17 criteria
by virtue of the disposal of its investment banking business which contributed more than 70% of the group revenue. Arising from the Disposal, the Company has a healthy cash position and also does not carry any long term liabilities. The Company is evaluating various options in its endeavour to formulate a plan to regularise the Company's financial condition to uplift
the PN17 status.
Consequent to the Disposal, the Company has proceeded with a capital restructuring exercise to return excess capital to shareholders. The issued capital of the Company was reduced from RM828,819,091 to RM268,222,091 on 28 February 2013 to commensurate with the reduced scale of business after the Disposal. In this respect, the Company and its subsidiaries ("the Group") continue to have the financial and operational resources to carry on the Group's remaining business operations.
The Group has existing licences that enable the Group to continue to operate financial services related businesses. Over time the group intends to use its resources to grow the business. The Group will continue to nurture its fund management business which is operated under Libra Invest Berhad. The Group has reactivated its structured financing activity and has started to generate loan income. The Group also derives income from its investment portfolio and property. Additionally, the Group will continue to get involved in areas relating to financial services where the Group has expertise. |
