KUCHING: Serba Dinamik Holdings Bhd (SDHB) posted losses of RM80.7 million in first quarter to Sept 30, 2023 (1Q2023) on shrinking revenue of RM13.8 million, generated mainly by the operation & maintenance (O&M) segment.
The losses have, however, narrowed from RM104.6 million in 1Q2022 when revenue recorded was RM213.6 million.
Losses per share were reduced to 2.16 sen from 2.81 sen previously.
In the current quarter under review, the O&M segment generated revenue of RM12.3 million (1Q2022: RM208.4 million) but its gross loss worsened to RM49.4 million (-RM35.2 million). The segment is involved in the maintenance, repair and overhaul of rotating equipment, inspection, repair and maintenance of static equipment and structure, maintenance of process control and instrumentation and other related services.
The education & training & others segment contributed about RM1.24 million in sales (RM2.04 million) and incurred gross loss of RM4.97 million (+RM322,000).
The information and communication technology (ICT) segment posted lower revenue of RM63,000 (RM580,000) and recorded higher operation loss of RM253,000 (-RM117,000).
The engineering, procurement, construction and commissioning (EPCC) segment did not generate any revenue (RM2.56 million).
On segmental revenue by countries, SDHB said South-east Asia region contributed RM5.17 million in revenue in 1Q2023 (1Q2022: RM35.5 million), with Malaysia generating RM5.05 million (RM34.8 million) and Indonesia RM110,000 (RM696,000).
In the current quarter under review, the group did not generate any revenue from the Middle East region (RM143.5 million) and zero income from central and south Asia region (RM29.5 million). However, the revenue from United Kingdom grew to RM8.5 million (RM5.2 million).
Commenting on prospects, SDHB said the board of directors anticipates that the group’s operations will remain challenging due to the uncertainty of the global economy as well as the current challenges the company is facing from a liquidity perspective.
“The group views that the O&M segment will remain its core competency and provides the fundamental of its operations.
“With the group being classified as a PN17 company, the board pledges to resolve the on-going issue, including the restructuring and regularisation plan, in the best interest of stakeholders,” it added.
Updating on the utilisation of gross proceeds of RM508.6 million raised from the private placement in February 2021, SDHB said RM454.2 million has been used up. The utilisation included RM100 million (19.7%) for partial repayment of bank borrowings, RM296.2 million (58.2%) for working capital and RM12.39 million (2.4%) for private placement expenses. The actual expense to the general mandate placement was actually only RM7.54 million, and the excess of RM4.85 million was reallocated and fully utilised for working capital requirement.
Out of the RM100 million allocated for capital expenses, RM45.6 million has been spent. Overall, 89.3 per cent of the gross proceeds has been spent.
