KUCHING: Hubline Bhd slipped into a group net loss of RM19.35 million for the financial year ended Sept 30, 2025 (FY2025), compared with a net profit of RM3.23 million a year earlier, as revenue fell to RM167.9 million from RM208.6 million.
The bulk of the losses came in the fourth quarter, when Hubline posted a RM14.14 million loss on revenue of RM39.3 million.
This contrasted with a RM3.61 million profit on RM51.8 million revenue in 4Q2024. Loss per share widened to 0.45 sen from earnings per share of 0.08 sen previously.
Hubline attributed the weaker results to a one-off impairment.
“The group’s financial results for the current quarter reflect a significant non-recurring non-cash administrative expense.
Specifically, the group impaired the goodwill allocated to the aviation segment, resulting in a charge of RM10.65 million,” it said.
In 4Q2025, shipping revenue dropped to RM23.45 million (4Q2024: RM31.88 million), while aviation revenue fell to RM15.81 million (RM19.93 million).
Hubline said shipping revenue declined mainly due to foreign exchange effects.
The RM8.43 million year-on-year drop was “due to unfavourable foreign exchange conversion of freight incomes from US dollar to ringgit because of the weakening of the US dollar to the ringgit in the current quarter.”
The aviation segment saw revenue fall by RM4.12 million. However, “the sales of the general aviation was higher as a result of increased activities from the new aviation and maintenance contracts secured during the current financial year.”
Course fee income from the flying academy declined following the “completion of cadets’ training contracts and graduation of the cadets.”
Quarter-on-quarter, Hubline performed better in 3Q2025, recording an after-tax loss of RM1.32 million on higher revenue of RM43.83 million.
FY2025 revenue of RM167.9 million came from shipping (RM102.84 million) and aviation (RM65 million). Shipping posted a pre-tax profit of RM5.33 million (FY2024: RM16 million), while aviation losses widened to RM4.2 million (RM3.38 million).
Headquarters and other activities recorded a larger loss of RM20.9 million (FY2024: RM12.62 million).
Hubline said it is working to restore momentum in its shipping operations.
“Despite the challenging logistics environment caused by global economic instabilitity and resulting market concerns, we are proactively combating these headwinds. Our efforts centre on maximising both vessel utilisation and operational effieincies.
By focusing on these elements, we are optimising the performance of our current fleet, which will enable us to secure greater market share as the market recovers.”
For aviation, the group said the focus is on executing existing contracts and pursuing new business.
“The flying academy segment still faces challenges in growing its student population. The management continues to focus on optimising operational efficiency, improve assets utilisation and expanding revenue base to improve operating profits.”
Group borrowings rose RM41.29 million to RM122.94 million as at Sept 30, 2025.
Hubline said the increase was largely due to higher working capital needs, with an average borrowing rate of 7.01 per cent per annum.
It added that its foreign currency loans remain unhedged:
“Our view is that while we are exposed to some foreign currency volatility in the short term, the impact is not significant in the long term, especially where our group does earn revenue in the same currency. Furthermore, hedging is costly and can introduce unwanted leverage to the group.”
