Handal Resources net loss narrows in Q2, thanks to higher revenue

PETALING JAYA: Handal Resources Bhd saw its net loss in the second quarter ended June 30 narrow to RM984,000 from RM1.3 million in the previous corresponding quarter on the back of higher revenue.
Revenue for the quarter rose 25.8% to RM14.98 million compared with RM11.9 million in the same period last year, due mainly to better performance across the group's business segments.
For the six months period, however, its net loss widened to RM1.94 million from RM636,000 a year ago, while revenue grew 10.9% to RM29.09 million from RM26.2 million previously.
Correspondingly, the group's balance sheet remains healthy with a current working capital ratio of 3.33 times and is in a net cash position of RM1.04 million, it said in a statement.
Handal recently embarked on an internal restructuring exercise, which saw the appointment of its new managing director Sunildeep Singh Dhaliwal, on July 30.

The group said its initial steps to turnaround the company include a cost rationalisation plan that will includes an immediate reduction in executive directors' pay by 30% as well as reducing other ancillary benefits resulting in estimated cost savings of RM2.5 million a year.
Going forward, Sunildeep said the new board will be working hand in hand with the senior management team to execute new directions and strategic plans towards achieving better financial results.