Selangor’s KPS posts net loss of RM274.6mil due to SPLASH

(Bernama) – Kumpulan Perangsang Selangor Bhd (KPS) incurred a net loss of RM274.6mil in its third quarter ended Sept 30, 2018 (Q3 2018) compared with a net profit of RM12.9mil in the corresponding period last year, mainly due to share of loss from associates particularly Syarikat Pengeluar Air Selangor Sdn Bhd (Splash).

Revenue, however, was higher at RM153.6mil from RM85.6mil, contributed by revenue from the new subsidiaries CPI (Penang) Sdn Bhd), King Koil Manufacturing West, LLC and KPS-HCM Sdn Bhd.

In a filing to Bursa Malaysia, it said Splash and Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint) posted share of loss of RM268.7mil and RM0.2mil respectively, compared with share of profit of RM18.1mil and share of loss of RM0.3mil respectively in Q3 2017.

The huge losses at Splash were mainly due to impairment losses on intangible asset and receivables.

For the first nine-month period, KPS recorded a net loss of RM223.1mil against a net profit of RM67.7mil in the same period in 2017. Revenue increased to RM410.8mil from RM238.3mil previously.

KPS said with the imminent takeover of the group’s 30% equity interest in Splash held through Viable Chip (M) Sdn Bhd, a wholly-owned subsidiary of the company, the group is continuously assessing business opportunities in sectors in existing investments and new business areas.

As for CPI, it will continue to focus on the high precision plastic injection moulding segment, which currently contributes the majority of its revenue, while gradually exploring the tremendous potential of the box-build segment.