AHB eyes exit of PN17 status by mid-2015

PUCHONG: AHB Holding Bhd expects to exit its Practice Note 17 (PN17) status within the financial year ending June 30, 2015, as it hopes to appeal the winding up of a subsidiary.
The premium office furniture manufacturer was classified a PN17 company on November 3 this year after its auditor expressed a disclaimer opinion due to uncertainties on the various effects in the financial statements ended June 30, 2014 in the event of deconsolidation of its wholly-owned subsidiary that has been wound up.
However, it has begun to settle all outstanding matters, in a bid to allow the subsidiary to apply to the court for a stay of winding up order.
Speaking to reporters after the AHB's AGM here yesterday, its CEO and managing director Yong Yoke Keong said the group will apply to Bursa Malaysia to exit the PN17 status once the legal process is settled.
"Now we're going through the legal process to resolve (the bank's petition which had led to the winding up of the subsidiary), which is only a matter of time," he added.
On whether the group will need to submit a regularization plan, which is the norm to exit a PN17 status, Yong was non-committal, saying only that the group is focusing on "exiting the PN17 status".
Yong also added that the group will apply for the upliftment of the PN 1 status that it triggered in August 2013 when it defaulted on a RM3 million payment, after it settles all the legal issues.
"The (bank borrowings) payments have been made, if you look at the financial statement, it's very positive," he said.
Yong said the group still has several million cash at hand, despite paying the RM4 million borrowings.
Moving forward, Yong said the group aims to achieve RM100 million in revenue within five years' time, driven by its rapid expansion in the overseas markets.
He believes the targeted revenue could be even higher if it is able to embark on mergers and acquisitions (M&As) in the Southeast Asia region.
"I've spoken to several parties … we don't want to acquire at a high cost, but for win-win situation," he said.
Yong pointed out that the group's profits have increased on the back of the weakening ringgit, which has benefited exporters in the country.
AHB has more than 25 export markets in different regions, making up about 85% of its total revenue.
Besides that, the group is looking to sign up new dealerships in the Middle East following its successful penetration into India, which saw two dealerships set up there off late.
For the first quarter ended September 30, 2014, AHB's net profit nearly doubled to RM436,000 from RM227,000 in the previous corresponding period.