30th Sep 2014 09:36
LONDON (Alliance News) - Media, advertising and marketing business Resource Holding Management Ltd Tuesday said it swung to loss in the first half of the year due to the costs associated with its transformational takeover deal, although revenue rose 27% thanks to the deal.
In early January the company completed the sale of its operating subsidiaries in return for a 62.48% stake in PUC Founder MCS Bhd, which is listed on the Malaysian stock exchange. It reduced its stake to 57.4% earlier this month when it sold 15.2 million PUCF shares for about MYR3.5 million, raising funds for working capital.
The company, which operates in China and Malaysia, reported a net loss of MYR10.1 million for the six months to June 30, compared with a MYR4.4 million profit a year earlier, mainly due to a MYR12.3 million one-off charge related to the takeover deal.
Its pre-items, pretax profit fell to MYR4.2 million, from MYR4.4 million, as an increase in revenue to MYR28.3 million, from MYR22.3 million, was offset by a big increase in administration expenses.
Revenue and gross profit growth was driven by the contibutions from PUCF's biometric business.
"Operationally in the advertising and media business we have seen an increasing acceptance of digital media in the region and the group continues to scout for potential acquisition opportunities," it said in its earnings statement.
Its cash and cash equivalents balances available for use on June 30 stood at MYR3.4 million, up from MYR3.1 million at the end of calendar 2013.
Resource Holding Management shares were down 10% at 14.52 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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