KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd's (KPS) net profit for the financial year 2023 fell 88 per cent to RM8.7 million, on lower share of profit from associates.
This was mainly due to the absence of the gain on disposal of Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (SPRINT) of RM128.7 million in the fourth quarter of 2022 (Q422).
The company said foreign exchange losses along with increased finance costs further contributed to the decline in net profit.
Its revenue decreased by 9.7 per cent from RM1.4 billion to RM1.2 billion, as it saw lower revenue from all sectors except trading.
KPS was incorporated 49 years ago, to act as a catalyst for the Selangor state economy.
For the fourth quarter ended Dec 31, 2023 (Q423), KPS recorded a net loss of RM1.7 million, compared with a net profit of RM46.2 million in the same period in 2022.
This was on one per cent lower revenue of RM319.2 million in Q423, compared with Q422.
Net profit for FY2023 was impacted by a loss of RM2.1 million at Century Bond Bhd due to impairment on inventories recognised during the year, along with a lower gross profit margin resulting from increased average paper costs and higher factory overhead costs.
Its main revenue contributor for the manufacturing business, Toyoplas Manufacturing (Malaysia) Sdn Bhd, also recorded a loss before tax and zakat of RM1.9 million for the year on lower revenue and foreign exchange losses.
KPS chief executive officer Ahmad Fariz Hassan in a statement said the company remains committed to implementing its value creation strategy.
"This involves enhancing product offerings, particularly focusing on higher-margin products, while also prioritising operational enhancements and careful cost management to ensure business resilience across its subsidiary companies," he added.
KPS's share price closed 1.2 per cent lower to 82 sen a share, giving it a market capitalisation of RM440.7 million.