KUALA LUMPUR: ECM Libra Financial Group Bhd’s net profit for 3QFY11 ended Oct 31 fell 75.7% to RM1.71 million from RM7.06 million a year earlier. This is mainly due to higher operating expenses, share of loss of an associated company, impairment allowance for bad and doubtful debts as well as losses on loans and advances.
Revenue rose marginally to RM45.65 million during the quarter from RM43.29 million a year ago, while earnings per share dropped to 0.21 sen from 0.87 previously. No dividend was declared during the quarter.
For 3Q, ECM Libra reported an impairment allowance for bad and doubtful debts of RM400,000 and a share of loss of an associated company of RM900,000.
“The group’s fundamentals and financial position remain strong and are expected to show satisfactory performance in the current financial year,” it said in an announcement to Bursa Malaysia yesterday.
For the nine months ended Oct 31, ECM Libra saw its net profit rise 58% to RM30.66 million from RM19.37 million a year earlier on a 24% increase in revenue to RM138.11 million from RM111.15 million. Earnings per share increased to 3.74 sen from 2.39 sen previously.
The counter closed unchanged at 80 sen yesterday with a total of one million shares changing hands, which gave it a market capitalisation of some RM664.7 million. The closing price is a 33.9% discount to its net assets per share of RM1.21 as at Oct 31.
The recent quarterly results are in stark contrast to ECM Libra’s stellar second quarter results in which it saw its net profit jump 189.12% to RM14.62 million from RM5.06 million a year earlier. This was driven partly by net brokerage income of RM10.5 million, fee income of RM5.7 million, net gain from trading and investment securities of RM8.4 million, net interest income of RM8.4 million as well as a writeback of impairment allowance of RM5 million from a legacy pre-merger account.
The Edge Financial Daily reported on Dec 1 that ECM Libra’s investment banking unit is believed to be an acquisition target of K&N Kenanga Holdings Bhd. It is learnt that the proposed acquisition that is currently being explored is a cash deal. Speculation that both parties were exploring M&A had been in the market as early as the first half of the year.
In April, The Edge weekly, quoting sources, reported that both parties were exploring a merger.
This article appeared in The Edge Financial Daily, December 15, 2011.
Revenue rose marginally to RM45.65 million during the quarter from RM43.29 million a year ago, while earnings per share dropped to 0.21 sen from 0.87 previously. No dividend was declared during the quarter.
For 3Q, ECM Libra reported an impairment allowance for bad and doubtful debts of RM400,000 and a share of loss of an associated company of RM900,000.
“The group’s fundamentals and financial position remain strong and are expected to show satisfactory performance in the current financial year,” it said in an announcement to Bursa Malaysia yesterday.
For the nine months ended Oct 31, ECM Libra saw its net profit rise 58% to RM30.66 million from RM19.37 million a year earlier on a 24% increase in revenue to RM138.11 million from RM111.15 million. Earnings per share increased to 3.74 sen from 2.39 sen previously.
The counter closed unchanged at 80 sen yesterday with a total of one million shares changing hands, which gave it a market capitalisation of some RM664.7 million. The closing price is a 33.9% discount to its net assets per share of RM1.21 as at Oct 31.
The recent quarterly results are in stark contrast to ECM Libra’s stellar second quarter results in which it saw its net profit jump 189.12% to RM14.62 million from RM5.06 million a year earlier. This was driven partly by net brokerage income of RM10.5 million, fee income of RM5.7 million, net gain from trading and investment securities of RM8.4 million, net interest income of RM8.4 million as well as a writeback of impairment allowance of RM5 million from a legacy pre-merger account.
The Edge Financial Daily reported on Dec 1 that ECM Libra’s investment banking unit is believed to be an acquisition target of K&N Kenanga Holdings Bhd. It is learnt that the proposed acquisition that is currently being explored is a cash deal. Speculation that both parties were exploring M&A had been in the market as early as the first half of the year.
In April, The Edge weekly, quoting sources, reported that both parties were exploring a merger.
This article appeared in The Edge Financial Daily, December 15, 2011.
