The non-bank lender focused in the used-car segment, today announced its financial results for the fourth quarter ended 31 March 2022.
During the quarter under review, the Group registered a 7% decline in revenue to RM35.96 million compared to RM38.75 million in the corresponding quarter a year ago.
The Group’s profit before tax for the quarter also decreased by 57% to RM7.53 million, primarily as a result of lower contribution from the hire purchase financing segment.
On a cumulative basis, the Group revenue was 10% lower at RM128.89 million compared to RM143.75 million last year.
Profit before tax also dropped by 24% to RM34.89 million compared to RM46.02 million a year ago.
This decline was largely due to the lower contribution from the Group’s hire purchase financing segment, which remains the Group’s core business activity and primary income contributor.
Hire purchase receivables as at 31 March 2022 dropped by 10% to RM468.05 million from RM522.80 million last year. This was in tandem with the Group’s cautious stance to preserve asset quality instead of driving receivables growth.
Hire purchase financing segment’s revenue for FY2022 decreased by 9% to RM85.30 million from RM93.31 million a year ago as a result of the smaller hire purchase portfolio. Profit before tax for the segment decreased by 22% to RM32.72 million from RM41.78 million mainly due to lower hire purchase revenue and higher impairment allowances but was mitigated by lower finance costs.
Finance costs decreased by 26% to RM9.54 million as a result of the Group’s concerted effort to pare down its borrowing during the financial year.
Impairment allowance had increased by 19% to RM22.15 million y-o-y while credit loss charge also increased to 4.13% from 3.15%. The higher impairment allowance and credit loss charge were mainly due to increase in impaired loan accounts during the year, largely caused by the disruptions of the hirers’ repayment patterns amidst the movement restrictions and lockdowns (MCO) imposed between June to September 2021.
The Group’s furniture segment saw revenue decline by 14% to RM43.59 million mainly due to business and operational disruptions caused by the MCO. This resulted in lower profit before tax of RM2.17 million for the twelve (12) months period ended 31 March 2022.
The Board of Directors has declared a second single tier interim dividend of 3.25 sen per share in respect of the financial year ended 31 March 2022. The dividend will be paid on 16 June 2022 to the shareholders whose name appear in the record of depositors of the Company as at 3 June With the declaration of the second interim dividend, the Board of Directors will not
recommend any final dividend for the financial year ended 31 March 2022.
