Stone Master's Q4 net loss narrows

PETALING JAYA: Stone Master Corp Bhd, which went through a boardroom tussle in May, saw its net loss for the fourth quarter ended Sept 30, 2017 narrow to RM1.81 million from RM4.35 million a year ago due cessation of the operations of unprofitable S.P. Granite Sdn Bhd (SPG).
Stone Master's revenue fell 18% to RM10.92 million in the fourth quarter compared with RM13.35 million in the previous year's corresponding quarter, due to a decrease in revenue from the conventional trading of building materials resulted by the intensified price competition and deferment of the projects due to the sluggish properties’ market.
Recall that Stone Master's former managing director Datuk Koh Mui Tee and ex-executive director Datuk Lee Hwa Cheng were removed from its board, while eight new directors were appointed, after the Kuala Lumpur High Court ruled that the EGM convened by its executive director and single largest shareholder Datuk Karen Lee Fong Yin was valid.
For the full year period, it saw a narrowed net loss of RM4.26 million compared with RM10.29 million a year ago; while revenue dropped 24% to RM55.08 million from RM72.31 million in the preceding year due to a decrease in revenue from the conventional trading of building materials.
Stone Master said it will continue to take all reasonable steps and precautions to mitigate the impact of rising costs and to identify market competitions in order to enhance the revenue base and expand business opportunities, as well as profitability.
"The company is negotiating with potential partners, possibly in the form of joint venture, to revive the businesses of SPG, a wholly-owned subsidiary with principal activities in manufacturing and trading of marble and granite products, as well as trading in ceramic tiles, sanitary wares and contract works."
Barring unforeseen circumstances, the company believes that the revival of the business operations of SPG would contribute favourably to the profitability of the group.
In addition, the company is also in the midst of formulating an appropriate regularisation plan to come out of its PN17 status.
Stone Master closed unchanged at 19 sen with 34,000 shares traded.