The Delisting Of Prime Utilities
Tuesday, March 23, 2010
This morning, Bursa Malaysia said it is rejecting Prime Utilities appeal against delisting and that it will delist Prime Utilities on April 2nd. This wasn't unexpected.
So I decided to indulge in some old news clip on Prime. Rather interesting as usual. Some optimistic views were mentioned in the press and despite the positive comments made, the company's turn around never did happen!
Sorry the links are all broken. :(
31st Oct 2006.
- Prime Utilities to turn around on new management team
By Gan Yen Kuan
Prime Utilities Bhd is confident of returning to the black for the current financial year ending April 30, 2007 following steps taken by its new management team to resolve problems affecting the company's performance.
Its managing director Datuk Paduka Khairuddin Abu Hassan said the company, which posted a net loss of RM118.8 million in FY06, would expedite the completion of its existing 150ha mixed housing project in Bukit Cerakah, Shah Alam, to bill more sales for FY07.
He said the remaining 15% of the 4,000-unit housing project, which had been delayed since 2004, would be handed over to buyers in six to eight months as the company remobilises its manpower to complete the construction.
"We know there were few hiccups but now we have a new complete team with good visions. We have the ability to turn around the company," he said.
Khairuddin, who was appointed in July, said the company was planning to launch another mixed housing development project on a 405ha parcel of land in Bukit Cerakah after "resolving whatever existing problems".
Khairuddin said the company was in talks to the banks for the restructuring of the loan facilities to settle its outstanding amount.
"We have no worries at all pertaining to this issue because we still have land and other resources. In the worst scenario, we may sell part of our land to settle all these old debts," he said.
The next day, Star carried this article.
- Wednesday November 1, 2006
Prime Utilities to turn around in FY2007
PETALING JAYA: Prime Utilities Bhd is confident of returning to the black in the financial year ending April 20, 2007, backed by sales that would mainly be from its Alam Perdana project, said managing director Datuk Paduka Khairuddin Abu Hassan.
In the fiscal year ended April 30, the company posted a net loss of RM2.78mil, which is less than the loss of RM7.66mil in the previous year. Revenue was RM39.28mil, an increase of 31% from RM30mil recorded earlier.
“Alam Perdana is a mixed residential project spanning over 370 acres at Mukim in Ijok,” Khairuddin said, adding that it would have a gross development value of “a few hundred million ringgit.”
“We have so far completed 20% of the construction work and we are certain of being able to complete the entire development and hand over to house buyers this fiscal year,” he said after the company AGM yesterday.
Khairuddin noted that the project was originally scheduled for completion in 2004, but was delayed due to internal hiccups.
He said he was confident the company, under the new management, would be able to deliver the project within the next six months.
“I hope this will improve the perception house buyers and investors have of Prime Utilities,” he said.
On the company's business outlook, he said Prime Utilities intended within the next five years to establish another residential project on 1,000 acres in Ijok, close to Alam Perdana.
“We will develop most of our property projects in this area as it has high sales potential,” said Khairuddin.
On Prime Utilities' strategy to decrease its borrowings of RM121.1mil, he said one option was to sell off some of its land.
For it first quarter ended July 31, the company posted a net profit of RM513,000, a 22% decline from RM657,000 recorded in the previous corresponding quarter. Revenue was down 72% to RM2.6mil from RM9.3mil previously.
New management team and the promise of turning around.
Come 29 December 2006. Quarterly rpt on consolidated results for the financial period ended 31/10/2006 Prime lost 1.383 million.
3 months later, 29 March 2007. Quarterly rpt on consolidated results for the financial period ended 31/1/2007. Prime lost 1.857 million.
June 2007. WINDING UP PETITION
November 2007.
- 05-11-2007: Prime Utilities hopes to see turnaround by end-FY08
by Yantoultra Ngui Yichen
KUALA LUMPUR: Prime Utilities Bhd hopes to see a turnaround by the end of its next fiscal year ending April 30, 2008 (FY08) driven mainly by the development of its 526.1ha land in Shah Alam.
Its executive chairman Datuk Kamal Bilal said the company was currently in various advanced stages of completing the first phase of its residential and commercial project measuring 121.4ha there.
“Hopefully we can complete phase one by the end of FY08 and start our phase two development by the second half of the next financial year,” he told The Edge Financial Daily.
Kamal added that the take-up rate for its phase one project was 80% to 90% and the company was confident that it would hit the same “sweet spot” when the second phase rolled out.
“We are working towards delivering most of the houses to buyers within a short timeframe and to speed up the construction works for the remaining units,” he said.
Prime Utilities posted a net profit of RM2.4 million for FY07 versus a net loss of RM120.7 million a year earlier while revenue fell 68% to RM13.1 million from RM41.3 million.
“The lower revenue was mainly due to the slowdown in progress works and no new launching of the development of our project,” Kamal said.
He added that, however, the company managed to record a profit due to write-back of allowance for doubtful debts.
“We will improve the company’s earnings for sure. We are also going to participate in the Northern Corridor (Economic) Region, Iskandar Development Region too,” he said, declining to elaborate.
27th June 2008. Quarterly rpt on consolidated results for the financial period ended 30/4/2008
The company announces a quarterly with zero revenue!!!
Oh yes, I did not type wrongly. It's zero! KOSONG!
The company's earnings notes: here is worth having a read!
Cash balances then was only 60 thousand! Loans were no small change at 120 million!
Look at what the management had to say and needless to say, what the company said about its future prospects looks like a might big joke now!
- 2. Material Changes in the Quarterly Results compared to Preceding Quarter
The Group recorded loss before tax of RM9.30 million as compared to a revenue of RM1.96 million and loss before tax of RM3.22 million achieved in the preceding quarter.
The loss before tax of RM9.30 million was basically due to interest provision on borrowings, operating expenses and other short term liabilities. On prudent basis, company has made an allowance for doubtful debts of RM 5.308 million in operation expenses even though the amount is collectable in the longer period.
3. Prospects for Financial Year 2009
Barring any unforeseen circumstances, the Directors are of the opinion that the Group’s performance for the financial year 2009 should be improved for its property development activities provided that there is a general improvement in the economic climate of the country.
3 months later. Prime still had zero revenue! Quarterly rpt on consolidated results for the financial period ended 31/7/2008.
From its earnings notes.
- 1. Review of Performance of the Company and its Principal Subsidiaries
The Group recorded a loss before tax of RM5.535 million during the current quarter. The Group’s result was derived solely from property development.
2. Material Changes In The Quarterly Results Compared To Preceding Quarter
The Group recorded loss before tax of RM5.535 million as compared to a lost of RM2.657 million in the preceding year corresponding quarter.
The loss before tax of RM5.535 million was basically due to interest provision on borrowings, operating expenses and other short term liabilities.
3. Current Year’s Prospects
The Group’s result in next financial quarter is not expected to be materially different from the current quarter. The Company is continuously take necessary steps to improve the financial position of the Group.
Future prospect is not expected to be materially different from current quarter!
What a massive understatement!
Nov 2009.
- Prime Utilities served winding-up notice
Written by The Edge Financial Daily
Monday, 16 November 2009 23:07
KUALA LUMPUR: PRIME UTILITIES BHD [], a Practice Note 17 (PN17) affected issuer, was today served with a winding-up notice by MALAYAN BANKING BHD [] (Maybank) which is suing the company's former major subsidiary for at least RM78.95 million.
In a statement to Bursa Malaysia today, Prime Utilities said it was unable to determine the expected losses, if any, which could arise from the winding-up order at this juncture. This is because its former major subsidiary Vega Builders Sdn Bhd is currently negotiating for an amicable settlement.
The sum claimed by Maybank is pursuant to a loan defaulted by Vega, in which Prime Utilities had acted as corporate guarantor. The sum claimed, payable by Nov 1 this year, carries an interest of 1.5% per annum.
Prime Utilities went on to say that its solicitors were "in the midst of taking necessary steps to set aside the notice".
According to an announcement dated Dec 21, 2004, Prime Utilities had agreed to dispose of Vega Builders to Outlook Rose Sdn Bhd for RM1.96 million.
Feb 2010.
- Tuesday February 9, 2010
Bursa to delist Prime Utilities
KUALA LUMPUR: Bursa Malaysia has decided to delist the securities of Prime Utilities Bhd (PUB).
The stock exchange regulator said the financial condition of PUB did not warrant continued listing on the official list of Bursa Securties.
“Accordingly, the securities of PUB will be removed from the official list of Bursa Securities on Feb 22, unless an appeal is made to Bursa Securities within five market days,” it said.
Ooops!
Time to shut the lights when I leave the room.
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