Group records loss
FHL attributes net loss to ‘drastic impacts’ of COVID-19
THE Fijian Holding Ltd Group recorded a net loss after tax of $17.597 million, compared with a profit after tax of $6.043 million in the last financial year.
This was according to the statement on the South Pacific Stock Exchange (SPX) website as the losses were incurred by major subsidiaries including South Seas Cruises Pte Ltd (SSC), Basic Industries Pte Ltd (BIL), Fiji Television Ltd (FTV), Life Cinema Pte Ltd (LCL) and Pacific Cement Pte Ltd (PCL).
These losses were said to be mainly due to the drastic impact of the COVID-19 pandemic, as well as some one-off adjustments to correct stock and share valuations.
The acting chairman Yogesh Karan said the group result was largely the reflection of the economic impact of COVID-19 had on the economy.
“The board and management have done the necessary changes to adapt to this new normal, and we are hopeful for better results for the new financial year,” he added.
The parent company was stated to report a profit after tax of $7.886 million, compared with $14.825 million for the same period last year.
The decline in performance, however, was largely caused by a decrease in dividend income from subsidiaries affected during the financial year, inclusive of BIL, SSC and FTV.
FHL stated the group had noted a reduction in total assets by $23.571 million, closing the year at $624.736 million.
This was mainly driven by decrease in loans and advances by Merchant Finance Pte Ltd (MFL) due to lower borrowings and impairment of LCL PPE, it also stated.
The tourism sector remained hibernated since the outbreak of the COVID-19 in March 2020, according to FHL as with the recent announcement on uplifting of international borders shed a brighter light on future outlook of SSC.
The construction sector was said to have felt the effects of economic downturn when some construction works came to a halt as the lockdown during the second wave of the outbreak also affected the operation of BIL and PCL adding to their losses.
FHL stated the financial sector also noted decrease in borrowings and higher loan deferral by customers, however despite this, MFL recorded an increase in net profit after tax of $1.88 million.
The retail sector, according to the company, continued to perform well as the major focus for spending during the outbreak were basic food items.
It was reported RB Patel Group Ltd (RBG) had recorded an increase in profit from operation of $0.430 million.
As of June 30, 2021, the group net assets stood at $266.139 million, while the shareholders’ funds for the parent company were reported at $521.808 million.