SHAH ALAM, Malaysia, Nov 30, 2023 – (ACN Newswire) – APB Resources Berhad (“APB” or the “Group”), a leading fabricator of design engineering equipment, today announced the Group’s financial results for the fourth quarter of financial year 2024 (4QFY2024).
The Board of Directors has approved a change in the Company’s financial year end from 30 September 2023 to 31 March 2024. The next financial year will span from 1 October 2022 to 31 March 2024, covering an 18-month period. Subsequent financial year ends will be on 31 March annually, allowing sufficient time for newly appointed Directors in June 2023 to gain a better understanding of business operations.
In the face of dynamic market conditions, APB maintained a solid revenue standing at RM18.9 million for 4QFY2024. While this reflects a slight adjustment of 5.1% year-on-year (YoY) from RM20.0 million, it underscores the Group’s ability to sustain its business operations amidst varying market demands. This period saw a strategic shift in the Group’s product mix, resulting in a gross profit margin of 33.9%, compared to 37.1% in 4QFY2022.
The Group’s profit after tax for the quarter was RM2.3 million. This outcome, while modest compared to RM4.8 million in 4QFY2022, is largely a result of prudent financial adjustments, including the net reversal of impairment losses on trade receivable and liquidated and ascertained damages from the prior year. Notably, APB showcased operational resilience on a quarter-on-quarter (QoQ) basis, achieving an uptick in profit after tax, rising from RM2.0 million in the preceding quarter to RM2.3 million in 4QFY2024. This improvement is attributed to an enhanced gross profit margin, bolstered by a more favourable product mix.
The management team of APB commented: “Our strategic efforts are now more crucial than ever. With the welcome addition of Datuk Koon Poh Tat as a substantial shareholder in June 2023, and the recent appointments of new members to our Board of Directors, we are invigorated and well-prepared to navigate the evolving market landscape. As we see a gradual uptick in demand within our key markets, we are poised to leverage our extensive experience in the fabrication of process equipment to meet this growing demand and drive our next phase of growth. These new developments within our leadership structure reinforce our commitment to strategic advancement and operational excellence.”
To conclude, APB is optimistic about the future, especially in the fabrication sector. With the industry showing signs of revived capital spending, particularly in areas where APB has established its expertise such as oleo-chemical, oil & gas, energy, and petrochemical sectors, the Group is well-positioned to capitalize on these emerging opportunities.
As of 30 November 2023, the share price of APB stands at RM2.41, representing a market capitalisation of RM272.0 million.
Topic: Press release summary