Kumpulan Europlus rakes in net loss of RM3.4 million

KUALA LUMPUR: Kumpulan Europlus recorded a net loss of RM3.4 million for its first quarter ended April 30, 2010 compared to a net profit of RM250,000 a year ago, it announced on Bursa Malaysia on Wednesday, June 30.

“The loss for the quarter was due to higher finance cost and lower other income, mitigated by lower operating expenses,” the Group said.

Revenue dropped by 10% to RM8.8 million from RM9.9 million a year ago, mainly attributable to the lower billings by the Group’s manufacturing division.

The basic loss per share for the Group dropped to 0.7 sen from a basic earning per share of 0.1 sen a year ago. The net assets per share dropped to RM0.1783 from RM0.1846.

The Group stated that the construction work at the Canal City project, which commenced towards the end of 2007, was stalled as the new State Government of Selangor requested changes to the original privatisation plan, including omitting the main canal and its related work.

“Under the revised proposal, the land, which had already been alienated to Canal City Construction Sdn Bhd (CCC), would be considered sold to 50%-owned Radiant Pillar Sdn Bhd, which owns 70% in CCC, at a price which has now been mutually agreed upon. The revised terms and conditions which have been worked out will soon result in a supplementary agreement to be signed with the State Government,” the Group said.