Johan incurs RM22.35mil net loss for FY18

PETALING JAYA: Johan Holdings Bhd registered a net loss of RM22.35mil for the financial year ended Jan 31, 2018 (FY18), with the fourth quarter posting a net loss of RM22.72mil.

This was largely due to a higher pre-tax loss of RM35.62mil from the discontinued building materials business.

In a filing with Bursa Malaysia, Johan said the closure cost and impairment of assets of Prestige Ceramic Sdn Bhd amounted to RM34.9mil.

Revenue for FY18 amounted to RM122.55mil, while revenue for the fourth quarter was at RM28.27mil.

In the previous financial year, Johan recorded a net loss of RM37.22mil while the fourth quarter of FY17 saw a net loss of RM23.67mil.

This was on the back of FY17 revenue of RM128.77mil and fourth quarter revenue of RM35mil.

The group’s businesses include franchise operator for Diners Club charge and credit cards, travel and tours, property development, resorts and hotels.

In the fourth quarter of FY18, Johan recorded a pre-tax profit of RM16.44mil, attributed to forex gain and fair value gain derived from investment securities of RM9.14mil and RM14.15mil, respectively.

The group’s card services had a lower interest income of RM5.36mil, while the hospitality business saw reduced revenue during the quarter.

Going forward, Johan will continue to build Diners credit cards business in Singapore through expanding card membership and merchants base to further increase card receivables and earnings.

“The group is collaborating with Alipay to expand its acceptance in Singapore.

“Diners E-Wallet with QR code acceptance is targeted to be launched in second quarter of the year with our major co-brand partners to further increase revenue and market share for the financial year ending 2019,” it said.

Johan also expects the conversion of its land in Puchong for property development to be approved in the current financial year.

“This will have a positive impact on the group’s profitability in the long term,” it said.