FSBM pursuing ‘substantive’ deals

CYBERJAYA: Loss-making IT service and systems provider FSBM Holdings Bhd is cautiously optimistic of returning to the black in the financial year ending June 30, 2016 as it is pursuing several projects.
Managing director Datuk Tan Hock San said these IT projects are substantive in value and recurring in nature as they can be multi-year projects.
“We’re looking at IT projects in solutions, communications and education. Some of the projects, like the trading of hardware, can be fast (to be recognised into its books). The projects that we’re pursuing are also a necessity for the clients,” he told reporters after its EGM here yesterday.
Tan explained that the process of securing big projects requires a longer time, citing a project that took four to five years to close as the client had to examine the vendor’s capability, capacity and more.
“We’ve been pursuing some of the projects for three to four years and now we’ve reached a stage where we can see the light,” said Tan.
FSBM has been in the industry for 34 years. Most of its clients are in the public sector.
On April 22, 2014, subsidiary FSBM CTech Sdn Bhd and FSBM brought an action pursuant to Section 304 of the Companies Act, 1965 against Dr Azman Awang, Haliza Bidin, Mariana Ahmad Tahar and Technitium Sdn Bhd for the recovery of debts amounting to RM8.56 million and RM31.4 million in respect of the supply of hardware and application of software and provision of professional services.
Tan said the continued hearing of the legal suit has been fixed for March 3, March 4 and March 28, 2016.
The solicitors of FSBM CTech and FBSM are of the opinion that FSBM CTech and FSBM have reasonable prospects of recovering the debt owed by the defendants.
Tan is confident, however, that the legal issues surrounding the company since 2010 have not hurt FSBM’s reputation.
“We’re the victim, we’re the plaintiff. We didn’t cheat so we’re trying to recover the money that rightfully belongs to the company. We’re taking all the legal steps.”
Earlier at the EGM, shareholders approved its proposed par value reduction involving the cancellation of 25 sen of the par value of every existing share of 30 sen in FSBM.