Subur Tiasa Holdings Berhad has received an unmodified audit opinion with a material uncertainty related to going concern for its financial year ended Dec 31, 2025 (FY2025), citing a mismatch between its current liabilities and assets.
The group said its external auditor, Crowe Malaysia PLT, highlighted that Subur’s current liabilities exceeded its current assets by RM355.8 million as at end-2025, raising significant doubt over its ability to continue as a going concern.
However, the auditors did not qualify their opinion, noting that the financial statements still present a true and fair view.
Subur reported a pre-tax profit of RM10.2 million for FY2025, compared with a loss previously, after recognising an impairment loss of RM25.6 million on certain non-productive assets. Net profit stood at RM2.7 million.
The group also recorded strong net operating cash inflows of RM108.1 million, up from RM74.4 million a year earlier, reflecting improved cost controls and operational discipline.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at RM96.2 million, underscoring stable earnings generation despite a challenging operating environment.
Subur said its oil palm plantation business continues to underpin profitability and cash flow.
The group maintained a planted area of 24,309 hectares, with about 73% of trees in prime maturity, supporting steady yields and future output growth.
For FY2025, the plantation segment posted a pre-tax profit of RM15.6 million and generated RM92.9 million in operating cash inflows. Fresh fruit bunch (FFB) production remained stable at 318,537 metric tonnes, with yields averaging 16 metric tonnes per hectare.
The company expects the segment to continue generating recurring cash flows to support working capital needs and debt servicing.
Meanwhile, Subur is continuing to streamline its timber and manufacturing operations to improve efficiency and reduce losses.
The segment recorded a narrower pre-tax loss of RM16.6 million, compared with RM26.2 million previously, while cash outflows declined by about 35%.
During the year, the group ceased non-viable operations, scaled down underperforming activities, and disposed of RM24.2 million worth of idle and non-productive assets. The rationalisation programme is expected to continue into FY2026.
Despite the going concern uncertainty, Subur said it has consistently met its debt obligations, with financing facilities continuing to be renewed by its banking partners.
