Printing and materials converting specialist, MTAG Group Berhad (“MTAG” or the “Group”) (“丰山集团”) announced its first quarter (“1QFY20”) financial results for the period ended 30 September 2019.
For the quarter under review, MTAG posted a revenue of RM49.1 million. This is primarily contributed by its converting business, which accounted for 89.3% or RM43.8 million of total sales. Meanwhile, MTAG’s distribution business contributed the remainder 10.7% or RM5.3 million.
The Group registered a profit before tax (“PBT”) of RM9.1 million in 1QFY20. This included a one-off listing expenses amounting to RM1.8 million (Total listing expenses were RM3.8 million and RM2.0 million was share issuance expense which was set off against share capital upon its listing). Excluding the one-off item, adjusted PBT stood at RM10.9 million.
As the Group was only listed on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 25 September 2019, there are no comparative figures for the preceding quarter and period-to-date available as no interim financial report was prepared for the comparative financial period concerned.
Group Managing Director of MTAG, Mr. Chaw Kam Shiang (周锦生) said, “This is the first set of financial results the Group posted as a listed company. Against the backdrop of a challenging business operating environment, we are satisfied with the performance registered. In addition, we are also delighted to have declared a single tier interim dividend of 1 sen per share to reward our shareholders.”
“Meanwhile, our expansion plans are progressing well. We have purchased several new machines with the proceeds raised from our initial public offering (“IPO”) allocated for capital expenditure. Looking ahead, our focus remains on the execution of our expansion plan and continue to grow the Group’s business.” Mr. Chaw further added.
On balance sheet strength, the Group’s gross cash holdings stood at RM101.9 million as at end-September 2019, which include cash and bank balances as well as fixed deposits with licensed banks. MTAG is in a net cash position with net cash per share of 14.9 sen per share, backed by net assets of 26 sen per share.
The Board has declared a single tier interim dividend of 1 sen per ordinary share for the financial year ending 30 June 2020. MTAG has a dividend policy of distributing at least 20% of its full year profit after tax and non-controlling interest (“PATNCI” or “net profit”).