16th Aug 2018 12:51
LONDON (Alliance News) - Shares in Malaysia-focused renewable energy firm Green & Smart Holdings PLC plunged on Thursday after the company said its half year revenue dived 93%.
The stock was trading 34% lower at 4.35 pence per share at midday on Thursday in London.
For the six months to March 31, Green & Smart posted revenue down to MYR1.8 million, equivalent to about GBP345,000, from MYR25.8 million a year before.
The company swung to an interim MYR5.7 million loss compared with MYR3.8 million profit the prior year.
The company said the disappointing results were mainly due to financial constraints which led to a reduction in the revenue generated under the contracts in its engineering, procurement, construction & commissioning unit.
The company's tight balance sheet also led to a "slower progress" within its fully-owned power producing projects, it added.
"As previously stated, due to financial constraints, progress was slower than initially expected on the other five fully-owned biogas power plants, but these will now be accelerated following the recent raising of MYR17.0 million through the subscription of new shares by Serba Dinamik International Ltd," the company added.
Green & Smart said it is confident it will return to growth next year, as well as deliver shareholder value in the long term.
Meanwhile, Green & Smart also published its "overdue" final results in respect of the year that ended September 2017. Under AIM rules, the company was due to publish them by the end of March, but several delays in the audit process led to the publication being postponed three times.
The shares, which had been suspended on March 20 after the company delayed publication of its annual results, were restored back to trading earlier on Thursday.
For financial 2017, the company's revenue dropped to MYR45.3 million from MYR67.4 million, as it swung to a MYR2.7 million pretax loss from a MYR9.9 million profit the year before.
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