Versalink Holdings Limited: FY2025 Audited Results & Analysis
Versalink Holdings Limited has released its audited financial statements for the financial year ended 28 February 2025. This report highlights the key material variances between the unaudited and audited figures, reasons for the adjustments, and provides insights into the company’s financial performance and corporate actions during the year.
Key Financial Metrics Comparison
| Metric |
FY2025 Audited |
FY2025 Unaudited |
YoY Change |
QoQ Change |
| Other Income and Gains (RM’000) |
1,303 |
883 |
+47.6% |
N/A |
| Administrative Expenses (RM’000) |
(9,095) |
(9,252) |
-1.7% |
N/A |
| Other Losses (RM’000) |
(784) |
(906) |
-13.5% |
N/A |
| Loss Before Income Tax (RM’000) |
(2,630) |
(3,329) |
+21.0% |
N/A |
| Net Loss and Total Comprehensive Loss (RM’000) |
(2,628) |
(3,327) |
+21.0% |
N/A |
| Loss Per Share (Sen) |
(1.95) |
(2.46) |
+20.7% |
N/A |
| Total Equity (RM’000) |
18,213 |
17,514 |
+3.99% |
N/A |
Note: The report does not provide prior year or quarterly figures, so YoY and QoQ comparisons are not available. All changes reflect variance between audited and unaudited FY2025 numbers.
Summary of Material Variances and Reasons
- Reversal of impairment loss on property, plant and equipment increased non-current assets and improved net loss.
- Reclassification of exchange difference losses affected both other income and administrative expenses.
- Accrual of additional directors’ salaries increased liabilities and accumulated losses.
- Reversal of provisions (notably for a litigation matter) reduced provisions and current liabilities.
- Additional impairment of investment in subsidiaries was recognized at the Company level.
Exceptional Items and Corporate Actions
- Impairment and Reversals: Significant reversals of impairment loss on property, plant and equipment (RM527,000) and additional impairments on investments in subsidiaries (RM2,578,000) were recognized.
- Legal Dispute: The company reversed a provision related to litigation between Ahmad Zaki Sdn Bhd and Versalink Marketing Sdn Bhd, positively impacting provisions and net assets.
- Directors’ Remuneration: Additional accruals for directors’ salary were made, affecting both company and group results.
- No Dividends: There is no mention of dividends for the year or prior period in the report.
- Reclassifications: Trade payables were reclassified to other receivables and other financial liabilities, impacting the balance sheet structure.
Chairman’s Statement
“The Board confirms that to the best of its knowledge, all material disclosures, facts and information have been provided and announced and are not aware of any facts, information or disclosures, the omission of which would make any statement in this announcement or disclosures misleading. Shareholders of the Company are advised to exercise caution when dealing in the shares of the Company. Persons who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers.”
Tone: The Chairman’s statement is cautious and factual, emphasizing transparency but warning investors to exercise caution given the company’s current situation.
Conclusion and Investment Recommendations
Overall, Versalink Holdings Limited’s FY2025 audited results reflect continued operational challenges, with the company remaining loss-making but reporting a lower net loss than previously indicated in the unaudited results. Improvements were primarily driven by reversals of impairment losses and provisions, rather than strong underlying operational performance. The company remains exposed to litigation risks and continues to face headwinds as indicated by the lack of dividend payout and ongoing accrual of directors’ remuneration.
- For current shareholders: Consider maintaining a cautious stance. While the reduction in net loss is positive, much of it is due to exceptional items and reversals, not sustainable business growth. Monitor future updates for evidence of operational turnaround or further exceptional expenses.
- For prospective investors: Exercise patience and avoid initiating new positions until there is clearer evidence of operational improvement and a return to profitability. The company’s current risk profile, lack of dividend, and ongoing legal and operational challenges do not present a compelling investment case at this time.
Disclaimer: This analysis is based solely on the information provided in the FY2025 audited financial statements and accompanying announcement. It does not constitute financial advice. Investors should consider their own risk tolerance and consult a professional adviser before making investment decisions.
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