Aspen (Group) Holdings recorded losses attributable to the owners of the company of RM59.4 million for 2HFY2021 ended Dec 31, 2021, down from a profit of RM85.4 million this time last year.
The group recorded 64% lower revenue of RM62.4 million and 93% lower gross profit of RM4.3 million for 2HFY2021 compared to this time last year.
No dividend has been declared or recommended as the management plans to conserve cash in this soft property market, says Aspen.
Losses per share for the period stood at 5.48 cents, down from earnings per share of 8.57 cents from the same period the year before.
The group’s revenue is largely made up of its property development segment, which declined due to a lower take-up rate and slower construction progress due to the Covid-19 pandemic, reads the company’s financial reports.
As for the healthcare segment, ongoing global supply chain challenges, higher shipping and logistics costs, prolonged shipping delays, higher production and energy costs, lower use rate and continuous decline in the average selling prices (ASP) of gloves impacted the performance of the healthcare segment.
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Revenue recorded by the healthcare segment was RM12.4 million, which represents 20% of the group’s revenue. The decline in cost of sales is in tandem with the decline in revenue.
The group’s results from operating activities recorded a loss of RM26.6 million compared to RM36.0 million profit as recorded in 2HFY2020.
The loss is mainly attributed to a lower gross profit as the healthcare segment is in its early stage of operation, says the company.
This was offset against the gain on disposal of an associate amounting to RM6.2 million, which is included in other income. Further, finance cost increased by RM5.8 million mainly due to the new borrowing obtained to finance capital expenditure for the newly set-up healthcare segment.
The group also shared the loss from results of equity-accounted investees ,including an impairment loss on the investment property held by the associate. As a result of the above, the Group recorded a loss for the period.
The Group’s non-current assets increased by RM213.9 million from RM785.8 million as at Dec 31, 2020 to RM999.7 million as at Dec 31, 2021, mainly due to the acquisition of property, plant and equipment in the healthcare segment amounting to RM213.8 million and an increase of RM28.2 million in deferred tax assets derived from the tax liabilities.
This was offset by the decrease in trade and other receivables and depreciation of property, plant and equipment amounting to RM10.8 million.
The group’s current assets decreased by RM53.8 million from RM783.8 million as at Dec 31, 2020 to RM730.0 million as at Dec 31, 2021, primarily due to the decrease in cash and cash equivalents of RM60.2 million.
This was mainly used for capital expenditure and repayment of borrowings and decrease in contract assets amounting to RM60.6 million due to the increase in progress billings for the Vertu Resort project and Beacon Executive Suites.
This was offset by an increase in development properties and contract costs by RM1.6 million and RM15.2 million respectively arising from the ongoing projects and an increase in trade and other receivables of RM31.0 million was mainly due to progress billings to purchasers yet to be collected.
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The group’s current liabilities increased by RM205.4 million primarily due to the increase in trade and other payables of RM153.2 million arising from the construction of a glove manufacturing plant and the increase in contract liabilities by RM58.1 million mainly for the Vertu Resort project.
On Oct 5, 2021, the subsidiaries of the Group had entered into composite agreements with the Inland Revenue Board of Malaysia (IRBM) where a partial balance of tax payable amounting to RM34.9 million will be settled via instalments over the next five years.
This resulted in an increase of RM27.4 million in tax liabilities.
The group reported a positive working capital of RM54.2 million as at Dec 31, 2021.
The group recorded net cash generated from operating activities of RM228.9 million for twelve months ended Dec 31, 2021, which comprised operating cash inflows after working capital changes of RM246.5 million and tax payments of RM17.6 million.
Net cash used in investing activities amounted to RM247.5 million, which was mainly for the acquisition of property, plant and equipment for the healthcare segment.
On Nov 19, 2021, the company announced a change of its financial year end from Dec 31 to June 30, to allow the group to better plan its audit schedule and holding of its Annual General Meetings during the off-peak period, thereby resulting in better cost savings and operational efficiencies. With the change of financial year end, the financial year ending June 30, 2022 will cover a period of 18 months from Jan 1, 2021 to June 30, 2022.
Shares in Aspen closed flat at 8.9 cents on Feb 11.
