LFE Corp’s Q2 net loss widens on higher sales cost

PETALING JAYA: LFE Corp Bhd saw the net losses for its second quarter, which ended Jan 31, widen to RM1.3 million on higher cost of sales.

This is compared to a net profit of RM538,000 for the corresponding quarter in 2017.

The decline was despite a 3.5% rise in revenue to RM5.7 million for the quarter under review, from RM5.5 million for the same quarter in 2017.

The group said it is actively pursuing and bidding for new projects in the mechanical, engineering, plumbing and construction sectors and it will continue to explore viable and profitable business opportunities locally and regionally through strategic alliances with both established local and foreign partners.

The group’s outstanding bank borrowing has been reduced to RM0.244 million and shareholders equity was RM39.818 million, achieving debt/equity ratio of 0.01 for financial period ended Jan 31.

“The objective of the group on capital management is to ensure that it maintains a strong credit rating and safeguard the group’s ability to continue as a going concern, so as to support its business, maintain market confidence and maximise shareholders’ value,” it said.

For the six-month period ended Jan 31, the group posted a net loss of RM2.4 million, compared with a net profit of RM1 million for the same period in 2017.

This was on 5.6% lower revenue of RM8.3 million for the period ended Jan 31, compared with RM8.8 million for the period ended Jan 31, 2017.