APFT aims to return to the black

> Flight education and training service provider hopes to complete debt settlement and win new businesses

PETALING JAYA: Flight education and training service provider APFT Bhd is targeting to return to the black in two years by completing its settlement of debts, embarking on a restructuring exercise and winning new businesses.

APFT has yet to improve its financial position and generate sufficient cash flow due to losses from its flight education and training division, as well as mechanical engineering works and services division for the oil and gas and petrochemical industries.

APFT has been incurring losses for the past five years as a result of softening demand for the fixed wing pilot training market in Malaysia, mainly due to local major airlines cutting back on their training programme for new pilots, as well as the delay in refinery and petrochemicals integrated development projects due to the current lacklustre oil, gas and petrochemical industries.

Newly-appointed executive director Edwin Silvester Das said the next step is for the group to complete the capitalisation exercise and settlements to creditors.

“We’re trying to clean up the company and we’ve got the intention to take it to the next level, out of the situation we’re in right now. There has been a lot of accumulated losses. We’re trying to restructure,” he told reporters after its EGM yesterday.

“APFT doesn’t have a big staff force to chop. We’re lean and mean. What we need to do is win new businesses.”

Edwin, who has experience in turning around companies, said APFT is still working on its expansion plans and sees potential in this business, as airlines expand, allowing it to also tap into the regional market.

“This is no sunset industry. As long as you’ve got aeroplanes, you need pilots. You have airlines buying planes so there is always a demand as companies progress.”

At this point, he said, APFT will still focus on its core business, but noted there is a possibility in any business to change going forward.

He added that APFT may also look into the leisure market for flight education.

“It’s a new possibility. There’s a lot of opportunity in this industry,” said Edwin.

Earlier at the EGM, shareholders approved its proposed settlement of debts owing to creditors and directors, as well as the proposed private placement to raise RM13.33 million, mainly to be utilised for the repayment to trade creditors.

The proposed creditors capitalisation entails the settlement of the amount owing to the creditors of RM11.32 million via the issuance of 226.3 million settlement shares.

The proposed directors capitalisation entails the settlement of the amount owing to directors of RM12 million and RM880,000 via the issuance of 240 million and 17.5 million settlement shares.

The company closed unchanged at 4 sen yesterday, having lost 33.33% of its share price in the last one year.