Thursday, December 2, 2010

Stamford College gets shareholders' nod for diversification

KUALA LUMPUR: Tertiary education provider STAMFORD COLLEGE BHD [] has received its shareholders' approval to diversify into the steel manufacturing business.

The PN17-company which received a show-cause letter by Bursa to be delisted, received the shareholders' approval to diversify into steel manufacturing in at an EGM on Thursday, Dec 2, 2010.

According to the circular, the group said that steel manufacturing was a natural extension from its steel trading operations that were started in 2004 as a risk management to supplement the group's education income.

It said that it could capitalise on the experience of its steel division team of experienced personnel with more than 30 years in the industry.

The company had begin production of intermediate steel billets at its factory in Semenyih, which contributed profit after tax of RM144,000 at the back of RM5.44 million for the six months ended June 30, 2010.

However, Bursa had rejected Stamford's diversification as part of its regularisation plan as it had yet to demonstrate the ability to generate profits and positive cash flow. The company had since appealed.


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