Avillion Berhad has disclosed that its external auditor has highlighted a material uncertainty related to the group’s ability to continue as a going concern, following losses and weak liquidity in its audited financial statements for the financial year ended March 31, 2026.
The hospitality and property group linked to the late Tun Daim Zainuddin said its external auditor, Baker Tilly Monteiro Heng PLT, issued an unmodified audit opinion but drew attention to uncertainties surrounding the group’s financial position.
The auditor noted that Avillion recorded a net loss of RM14.88 million at the group level and RM3.37 million at the company level during FY2026.
The group also reported negative cash and cash equivalents of RM13.23 million, while the company recorded negative cash and cash equivalents of RM4.91 million.
In addition, the company’s current liabilities exceeded its current assets by RM51.08 million as at March 31, 2026, indicating a material uncertainty that may cast significant doubt on its ability to continue operating as a going concern.
According to the auditor, if the group’s recovery plans do not materialise, Avillion may be unable to realise its assets and settle its liabilities in the ordinary course of business, potentially requiring adjustments to the carrying values and classifications of its assets and liabilities.
Despite the uncertainty, Avillion’s board said it remains confident that preparing the financial statements on a going concern basis is appropriate, citing several initiatives aimed at strengthening the group’s financial position.
Among the measures being implemented are the rollout of new promotional packages to improve hotel occupancy and revenue, disposal of low- or non-yielding land assets, intensified sales and marketing efforts to clear remaining property inventory, continued access to banking facilities, potential immediate sales of selected land held as inventories, as well as group restructuring and fund-raising exercises.
The company said it expects the issues relating to the material uncertainty to be resolved during the subsequent financial year, barring any unforeseen circumstances.
