KUALA LUMPUR (Aug 6): Furniweb Holdings Ltd, a 54.19%-owned subsidiary of PRG Holdings Bhd, has issued a profit warning to its shareholders and potential investors.
It is said that they expect a record of net loss worth RM4.2 million for the six months ended on June 30, 2019 (1H2019) compared to net profit of RM600,000 in the same period last year.
According to PRG, Furniweb had announced on August 5 to the Hong Kong Stock Exchange that it expects the loss due to increase in marketing and distribution cost as the retail business of the group commenced operation in the second quarter of 2019.
They also accredit the loss due to the increase in administrative expenses particularly on professional fees incurred for the acquisition of Meinaide Holdings Group Ltd, which was completed on June 28, 2019, as well as pre-operating and administrative expenses incurred during the period for its retail business. As of today, PRG was flat at 58.5 sen giving the stock a market capitalisation of RM212.36 million..