Mulpha warns its hotel and education units to be 'materially impacted' by COVID-19

KUALA LUMPUR (March 24): Mulpha International Bhd, which is involved in real estate, hospitality and education, has warned that revenue and earnings across its hotel and education assets will be materially impacted from mid-March, as a result of recently-introduced travel bans in Malaysia, Australia, the UK and New Zealand, amid the coronavirus (Covid-19) outbreak. 

"This impact is expected to be most severe in our hotel assets, where occupancies are expected to reduce substantially and closure may be necessary, while restrictions remain in place," it told a bourse filing today.

Mulpha is also expecting its education operations to be impacted.

"We anticipate that earnings for the first school term will not be materially impacted, while future enrollments from international markets will be down substantially, due to restrictions placed on entry from China and other Asian nations," it added.

The group noted at this stage, its real estate operations have not been materially impacted by the Covid-19 pandemic, although it expects that sales enquiry will reduce over the coming weeks, due to further government restrictions on entry by international visitors to Australia and enforcement of self-isolation and limits to public interaction.

The group posted a net loss of RM211.88 million for the financial year ended Dec 31, 2019 (FY19), compared with a net profit of RM235.7 million a year earlier, citing the unfavourable performance as due to sluggish retirement asset sales of an associate, AVEO.

Revenue for FY19 stood at RM850.01 million, an 8.3% increase from RM784.9 million in FY18.

Shares of Mulpha closed down 6 sen or 4.84% at RM1.18 today, for a market capitalization of RM377.15 million.

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