Parkson Holdings' unit issues profit warning

PETALING JAYA: Parkson Holdings Bhd's unit, Parkson Retail Group Ltd (PRGL), has issued a profit warning for the first quarter of this year due to a RMB140 million provision for a breach in a tenancy agreement.
In a stock exchange filing yesterday, PRGL said the arbitral award of RMB140 million made against its unit, Parkson Retail Development Co Ltd, on March 25 represents about 57% of the audited net profit of the group for the year ended Dec 31, 2014.
Parkson Retail is a wholly owned unit of PRGL, which in turn is a 53.07% unit of Parkson Holdings.
It said based on a preliminary review of the unaudited consolidated management accounts of the group for the two months ended Feb 28, 2015 and taking into account the arbitral award, PRGL "does not expect that the operating results of the group for the first quarter of 2015 can cover the impact resulting from the arbitral award".
PRGL expects the profit of the group for the three months ending March 31, 2015, due out in May 2015, will decline significantly as compared with the corresponding period of year 2014. Parkson Hodlings' shares will resume trading today.