BAssets 4Q net loss widens following higher deferred tax bill

KUALA LUMPUR (Aug 22): Berjaya Assets Bhd’s (BAssets) net loss widened significantly in the fourth quarter ended June 30, 2019 (4QFY19) to RM83.1 million from RM30.2 million in the previous corresponding quarter as a result of higher deferred taxes provision.

In a bourse filing yesterday, the group said there was wider net loss in spite of the group’s quarterly revenue more than doubling to RM102.25 million from RM48.49 million.

BAssets’ loss per share (LPS) expanded to 3.32 sen, from 1.21 sen in the previous corresponding quarter.

The group attributed higher revenue to the recognition of the sale of several parcels of land worth RM26.1 million; higher contribution from its vehicle assembly, gaming, hotel and recreation segments; and comparable revenue from property development and investment segments.

BAssets said its higher net loss was due to the higher deferred tax provision on fair value changed in investment properties amounting to RM59.3 million, following the recent increase in Real Property Gains Tax (RPGT) tax rates.

BAssets posted an annual net loss of RM82.58 million for the financial year ended June 30, 2019 (FY19) from RM32.96 million last year, while FY19 revenue increased 5.8% to RM330.73 million from RM312.69 million in FY18.

LPS rose 3.3 sen for FY19 against 1.31 sen the year before.

“Given the prevailing economic conditions and financial outlook, the directors expect the property investment and hotel and related businesses operated by the group to maintain their occupancy rates and market share respectively going forward.

“The directors envisage that the operating performance of the Group for the financial year ending June 30, 2020, will be satisfactory,” said BAssets when commenting on its prospects.

Its share price closed 0.5 sen higher at 30.5 sen yesterday, giving it a market capitalisation of RM780.24 million.

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