KUCHING: Sarawak Cable Bhd (SCB) posted a massive group net loss of RM336.3 million on revenue of RM358.8 million for the 18-month period ending November 30, 2024.
The losses were primarily due to impairment losses on “other receivables” and the liquidation of subsidiaries.
Loss per share stood at 84.28 sen.
There are no comparative figures for 2023, as SCB changed its financial year-end from May 31 to November 30.
A PN17 company in financial distress, SCB is under the management of an interim judicial manager appointed by the High Court of Malaya.
SCB’s revenue sources for the 18-month period: Cables and wires: RM298.6 million (84.7 per cent of total revenue), transmission line construction: RM40 million (11.2 per cent)and galvanised products & steel structures: RM20 million (5.6 per cent).
“The sales of cables and wires segment contributed 84.7 per cent of the group’s total revenue for the period. This segment recorded revenue of RM298.6 million and a loss before tax of RM38.3 million,” SCB said in explanatory notes to its financial results.
“As reported earlier, this segment has been operating under lower capability using all internal resources, leading to reduced production, lower revenue, higher unabsorbed overheads, and segment losses. This segment collectively accounts for at least 50 per cent of the group’s total assets on a consolidated basis.”
The High Court appointed Deloitte Restructuring Services PLT on May 15, 2024, as joint and several liquidators for Leader Cable Industry Bhd and Universal Cable (M) Bhd, both SCB subsidiaries.
The galvanised products & steel structures segment contributed 5.6 per cent to total turnover but posted a pre-tax loss of RM6.8 million.
“The segment is also operating using internal resources as its financing lines are on a standstill while negotiations with creditors are ongoing. This has resulted in reduced operations, and consequently, the low revenue was insufficient to cover manufacturing and operating expenses, leading to segment losses,” the company said.
The transmission line construction segment, which contributed RM40 million (11.2 per cent) to group revenue, reported a pre-tax loss of RM1.2 million.
“The progress of all projects is also affected by the standstill in financing lines. Despite that, we are making every effort to ensure all ongoing projects are completed within the committed construction period. The company has disposed of a subsidiary, PT Inpola Mitra Elektrindo, under this business segment.”
For the three months from September to November 2024, SCB reduced its group net loss to RM12.97 million, down from RM35.82 million in the corresponding period in 2023, though revenue plunged to RM2.62 million from RM107.46 million.
SCB attributed the higher pre-tax loss in the latest quarter to interest expenses amounting to RM11 million.
SCB said an interim judicial manager was appointed on July 9, 2024, with the initial hearing on the judicial management application scheduled for August 9, 2024.
However, the hearing has now been postponed to May 9, 2025.
“The interim judicial manager is awaiting an official offer from a potential white knight to present a proposal for the company’s resuscitation to stakeholders. The group’s future prospects will depend on the outcome of these events.”
In December 2023, SCB announced that Serendib Capital Limited, a UK-based investor, had submitted an interest in a RM250 million resuscitation plan to pare down debts and recapitalise the company.
However, five months later, SCB said the memorandum of agreement with Serendib Capital fell through, citing the failure to establish an exclusive working relationship.
SCB terminated the agreement, but Serendib Capital disputed the termination, insisting that it “remains in force and cannot be unilaterally terminated.”
In May 2024, SCB claimed it had identified a “strong alternative party” interested in leading its revival plan. However, it has yet to disclose the party’s identity.
