Wednesday, 29 July 2009

KAF-Seagroatt returns to RM12m profit in fourth quarter

KAF-Seagroatt returns to RM12m profit in fourth quarter

Tags: fourth quarter KAF-Seagroatt & Campbell Bhd

Written by Financial Daily
Friday, 24 July 2009 09:53

KUALA LUMPUR: KAF-SEAGROATT & CAMPBELL BHD [] returned to profitability, with a net profit of RM12.12 million in its fourth quarter (4Q) ended May 31, 2009 versus a net loss of RM37,000 in the previous three months to Feb 28, 2009 due to higher volume of transactions and writeback in allowance for the diminution in the value of equity.

Revenue jumped 129% to RM6.78 million from RM2.96 million. No final dividend was proposed.

For the year ended May 31, 2009 (FY09), KAF-Seagroatt posted a net loss of RM2.96 million versus a net profit of RM17.49 million in FY08, while revenue fell 53% to RM19.73 million from RM42.54 million.

The group’s financial year-end was changed from March to May, starting with the 14-month period ended May 31, 2008. The stock was untraded yesterday, while it closed at RM1.18 on Wednesday.

This article appeared in The Edge Financial Daily, July 24, 2009


Tough times ahead but KAF won't cut jobs
By Chong Pooi Koon
Published: 2008/11/12

There's no way any brokers are going to maintain the 2007 or 2008 earnings into 2009, says KAF-Seagroatt's managing director Datuk Khatijah Ahmad

STOCKBROKING firm KAF-Seagroatt & Campbell Bhd (5096) will make a smaller profit in the year to May 2009 as market volume dwindles, but it will not cut jobs even as it anticipates the next three years to be tough.

Instead, managing director Datuk Khatijah Ahmad sees an opportunity to hire and strengthen the staff force of the research-driven broking house as other global banks start to retrench amid the financial crisis.

"There're no job cuts or pay cuts although the bonus may not be as good as last year's. We want to retain good people," Khatijah said after a shareholder meeting in Kuala Lumpur yesterday.

KAF-Seagroatt made RM17.5 million net profit in the 14 months to May 31 2008 on revenue of RM42.5 million.
Khatijah said, however, that such earnings would not be sustained this year.

"The foreign investors are leaving or have left, the volume has dropped in the equity market. There's no way any brokers are going to maintain the 2007 or 2008 earnings into 2009," she said.

The global financial market is in unchartered waters and, until the foreign investors return to Malaysia, there's little catalyst for the stock market.

"One should be prepared for a very slow market. As long as we are not losing money and can maintain the business, we should be fine," Khatijah said.

KAF-Seagroatt is a low-cost operator and can ride out the market trough in the next few years through earnings from its solid balance sheet, she added.

As at May this year, its total current assets were more than double its current liabilities and the broker has had no borrowings.

Khatijah is also not too concerned over the investment revaluation loss after its asset prices were marked-to-market, which dragged the company to a first quarter net loss of RM4.7 million.

"These are blue-chip shares that pay good dividend. It'll be silly to liquidate in this bottoming market," she said.

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