Computer Forms (Malaysia) Berhad Releases Interim Financial Report for Period Ended 28 February 2026

Key Financial Highlights

• Change in Financial Year End: The Group has changed its financial year-end from 30 September to 28 February, resulting in a 17-month reporting period from 1 October 2024 to 28 February 2026.
• Revenue and Profitability: For the cumulative 17-month period, the Group recorded revenue of RM18.06 million and a pre-tax loss of RM0.54 million. For the most recent two-month quarter, revenue stood at RM2.11 million with a pre-tax profit of RM0.68 million.
• Earnings Per Share (EPS): For the two-month quarter, basic/diluted EPS was 0.20 sen; for the 17-month period, it was a loss of (0.12) sen per share.
• Segment Performance: The business forms and data print services segment remains the main revenue contributor (RM16.73 million out of total RM18.06 million for the 17-month period), followed by commercial printing and flexible packaging.

Balance Sheet and Cash Flows

• Total Assets: As at 28 February 2026, total assets stood at RM129.57 million, with equity attributable to owners at RM123.07 million.
• Cash Position: The Group ended the period with cash and cash equivalents of RM17.56 million. Significant cash outflows from operations (RM76.43 million) were offset by large inflows from investing activities, notably the uplift of fixed deposits amounting to RM92.69 million.
• Borrowings and Lease Liabilities: Total borrowings and lease liabilities amounted to RM1.22 million, all in Ringgit Malaysia and secured. The Group does not have any foreign currency borrowings.
• Net Assets Per Share: RM0.39 as at 28 February 2026, a decline from RM0.44 as at 30 September 2024.

Share Issuance Scheme (SIS) and Capital Structure

• Share Issuance: The Group executed options under the Share Issuance Scheme (SIS), resulting in the issuance of 46,157,650 new shares to eligible employees, fully exercised as of 4 February 2026. This increased share capital by RM5.09 million.
• No Dividends: No dividends were paid or proposed during the period.

Utilisation of Proceeds from Corporate Exercises

• Land Disposal (2021): Of the RM91.1 million proceeds, RM85.2 million has been utilised with RM5.9 million remaining for working capital/future investments. The timeframe for utilisation was extended by 12 months to 15 September 2026.
• Private Placement (2022): Of RM71.71 million raised, RM70.49 million has been utilised with RM1.21 million remaining for capital expenditure. The utilisation period was extended by 12 months to 5 March 2027.

Material Items & Events

• No Material Litigation: The Group is not involved in any material litigation as of the report date.
• No Dividends Proposed or Declared for the current period.
• No Significant Related Party Transactions or material subsequent events were reported.
• No Unusual Items: No items of an unusual nature, size, or incidence were reported.
• No New Contingent Liabilities: Except for RM33,000 in bank guarantees to third parties.

Segmental Breakdown

• Business Forms and Data Print Services: Main contributor with RM16.73 million revenue (17-month period).
• Commercial Printing: RM1.19 million revenue.
• Flexible Packaging: RM0.15 million revenue.
• Other Income: Substantial other income, including interest income (RM2.14 million) and a large reversal of expected credit loss (RM4.65 million).

Management Outlook & Market Risks

• The Company remains cautious due to ongoing market uncertainties and geopolitical tensions, notably between Israel and Iraq, which have driven up global oil prices and overall cost pressures.
• Management is focused on cost control, margin preservation, and strategic capital allocation amid softer consumer sentiment and higher input costs.
• The Board did not provide any revenue or profit estimate or forecast for the coming periods.

Price-Sensitive Information for Investors

• Net Loss for the Period: The Group posted a net loss of RM0.71 million for the 17-month period, reflecting operational challenges and heightened cost pressures.
• Change in Financial Year-End: The adjustment to a 17-month reporting period and lack of comparable prior data may lead to volatility or uncertainty in market assessments.
• SIS Share Issuance: The substantial share issuance under the SIS (46.16 million new shares) may have a dilutive effect on EPS and is important for shareholders to consider.
• No Dividend: The absence of a dividend payout may affect investor sentiment, especially for yield-focused shareholders.
• Strong Cash Position: Despite the operational loss, the Group’s strong cash position and low borrowings provide a degree of financial stability.
• Extension of Utilisation Periods: The extension for the use of proceeds from previous asset sales and private placements signals ongoing investment and working capital requirements, which may impact future growth plans.

Conclusion

While Computer Forms (Malaysia) Berhad faces operational losses and market uncertainties, the Group has a robust cash position, minimal debt, and is actively managing its capital base through the SIS and prudent utilisation of funds from asset sales and private placements. However, shareholders should be aware of the dilution from recent share issues, the absence of dividends, and the challenges posed by global economic conditions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a professional advisor before making investment decisions. The author and publisher are not responsible for any investment actions taken based on this article.

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