KUALA LUMPUR, March 23 — Landmarks Bhd, which today announced it has returned to the black in the financial year ended December 31, 2020 (FY20), will ask Bursa Malaysia Securities to reconsider its rejection of the company’s waiver application following the turnaround in performance.
In a filing with Bursa Malaysia, the group reported a net profit of RM67.41 million in FY20 compared with a net loss of RM100.89 million in the year before.
Its bottom line for the year rose to positive territory thanks to a net profit of RM115.49 million posted in the fourth quarter (Q4).
Landmarks attributed the better Q4 results partly to a one-off gain on disposal of 51 per cent equity interests in subsidiaries of RM32.65 million and fair value gain recognised on investment in subsidiaries becoming a joint venture amounting to RM31.07 million.
However, FY20 revenue was lower at RM37.96 million compared with the RM116.60 million recorded in the preceding year.
Amid the improved earnings, Landmarks also announced today that Bursa Securities had on March 22 issued a letter rejecting its application for a waiver from complying with paragraph 8.03A(3) of Main Market Listing Requirements.
The company had applied for the waiver on January 28 after potentially becoming an affected listed issuer as a result of a major fire at The Andaman Resort, Langkawi, on January 13. The financial impact of the fire has yet to be fully ascertained.
Landmarks said Bursa Securities’ decision was due to concerns on the viability, sustainability, prospects and the level of operations of the existing/ remaining businesses of Landmarks and its group of companies.
Bursa Securities noted that the re-commencement of operations of the Andaman Resort in the near future remained uncertain at this time.
Other reasons given are that the group incurred operating and net losses for the past five financial years ended up to financial year ended December 31, 2019, and for the financial period ended Sept 30, 2020; and the group did not record two consecutive quarters of net profits prior to the application.
“However, in view of the company’s FY20 financial results – which were only approved by the company’s board of directors today and therefore could not be made available and known to Bursa Securities when they made their decision to reject the waiver application – the company has decided to submit an application to Bursa Securities requesting a reconsideration of its rejection of our application for waiver,” Landmarks said.
The Andaman, a 180-room luxury hotel, posted an operating loss of RM8.58 million in FY20 compared with an operating profit of RM14.94 million in FY19 mainly due to the Covid-19 pandemic.
Going forward, Landmarks said the group was stepping up its tactical sales and marketing plans to drive demand and business from the domestic market.
It is also actively exploring potential joint venture development, sales of development land and sales of resort. — Bernama
