Nexgram slips into the red in Q1 on higher losses at IT units

PETALING JAYA: Nexgram Holdings Bhd swung into the red, registering a net loss of RM2.3 million for the first quarter ended Oct 31, 2016 against a net profit of RM3.9 million in the previous corresponding period, mainly due to an increase in losses contributed from subsidiaries involved in information technology, which have now been disposed of.
Revenue for the quarter under review was down by 56.7% from RM31.01 million to RM13.43 million.
In a filing with the stock exchange, Nexgram said the group is expected to continue and focus on the development and future growth of its existing businesses in view of the uncertainties and challenges ahead.
As part of its on-going business rationalisation, it has disposed off subsidiaries that are dormant and had contributed losses to the group for the past years.
Furthermore, as a continuation group’s long-term growth strategy of venturing into other sectors beyond its ICT and property-based businesses, Nexgram had acquired Transeaways Shipping Sdn Bhd and Blue Hill Development Sdn Bhd, which will provide a new source of recurring income to the group.