M-Mode proposes to diversify into construction business

PETALING JAYA: Mobile content and data application company M-Mode Bhd said the group is planning to diversify into the construction business by way of securing construction projects.
Currently, the group is involved in the provision of mobile contents, data application services, production and distribution of magazines as well as acting as a media advertisement agent.
The group told the stock exchange, it intends to diversify into the construction business for additional sources of income, and to enhance its prospects.
Last May, the group announced that its wholly-owned subsidiary E&J Builders Sdn Bhd (E&J) entered into a joint venture agreement with Rexallent Construction Sdn Bhd (RCSB) to undertake and complete the remaining construction of a residential development project known as H2O for a contract sum of RM180 million.
It said the proposed diversification will be undertaken through the H2O project and other construction projects to be secured.
M-Mode said the board believes that the proposed diversification would contribute positively to the group's future earnings and improve its financial position. The board expects the construction business to contribute at least 25% to the group's net profits.
In this regard M-Mode said the board proposes to seek the approval of the group's shareholders for the proposed diversification at an EGM to be convened. It intends to continue with its existing business of mobile content and data application, in largely the same manner.
The stock gained 5.17% to close at 30.5 sen last Friday with 272,000 shares traded.