KUALA LUMPUR: SILK Holdings Bhd's earnings jumped 146% to RM11.55 million for the fourth quarter ended July 31, 2010 from RM4.68 million a year ago, boosted by a one-off RM11.9 million negative goodwill and its highway division.
The company said on Thursday, Sept 30 revenue rose 32.4% to RM59.61 million from RM45 million. Net assets per share were 0.37 sen.
SILK said the higher revenue in 4Q10 was due to recognition of contribution from the highway division compared to a year ago when there was only the oil and gas division.
'Profit before taxation increased by 63.6% to RM14.5 million from RM8.9 million as a result of recognition of a one-off negative goodwill of RM11.9 million and after taking into account RM4.6 million losses incurred by the highway concession subsidiary.
'After taking into account tax charge of RM2.1 million, the group recorded 146.4% increase in profit after taxation and minority interest of RM11.6 million from RM4.7 million in the preceding year current quarter,' it said.
For the financial year ended July 31, 2010, net profit was RM19.25 million compared with Rm20.82 million a year ago. Revenue was 223.94 million compared with RM206.67 million.
Note: The negative goodwill arose from a reverse take-over (RTO) arrangement. To recap, the acquisition of AQL Aman Sdn Bhd was completed on Oct 14, 2009. Pursuant to FRS 3 ' Business Combinations, this acquisition was deemed a reverse take-over arrangement.
Due to the application of FRS 3 rules relating to RTO, AQL, the legal subsidiary, became the acquirer of the group for accounting purposes. Accordingly, the consolidated financial statements for the current period and the comparative amounts in the corresponding period of the preceding year have been prepared as a continuation of the financial statements of AQL, but under the name of SILK, the legal parent.)
The company said on Thursday, Sept 30 revenue rose 32.4% to RM59.61 million from RM45 million. Net assets per share were 0.37 sen.
SILK said the higher revenue in 4Q10 was due to recognition of contribution from the highway division compared to a year ago when there was only the oil and gas division.
'Profit before taxation increased by 63.6% to RM14.5 million from RM8.9 million as a result of recognition of a one-off negative goodwill of RM11.9 million and after taking into account RM4.6 million losses incurred by the highway concession subsidiary.
'After taking into account tax charge of RM2.1 million, the group recorded 146.4% increase in profit after taxation and minority interest of RM11.6 million from RM4.7 million in the preceding year current quarter,' it said.
For the financial year ended July 31, 2010, net profit was RM19.25 million compared with Rm20.82 million a year ago. Revenue was 223.94 million compared with RM206.67 million.
Note: The negative goodwill arose from a reverse take-over (RTO) arrangement. To recap, the acquisition of AQL Aman Sdn Bhd was completed on Oct 14, 2009. Pursuant to FRS 3 ' Business Combinations, this acquisition was deemed a reverse take-over arrangement.
Due to the application of FRS 3 rules relating to RTO, AQL, the legal subsidiary, became the acquirer of the group for accounting purposes. Accordingly, the consolidated financial statements for the current period and the comparative amounts in the corresponding period of the preceding year have been prepared as a continuation of the financial statements of AQL, but under the name of SILK, the legal parent.)
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