KUALA LUMPUR (Feb 14): Bursa Securities has granted Practice Note 17 (PN17) company Top Builders Capital Bhd a six-month extension to submit its regularisation plan to regulatory authorities.

According to a Bursa Malaysia filing on Tuesday (Feb 14), the new deadline for the piling and engineering group to submit its regularisation plan to the Securities Commission Malaysia (SC) or Bursa Securities has been extended to June 29, 2023.

On Jan 3 the group had requested a three-month extension from Dec 29, 2022.

On Dec 1 last year, the company said it was still in the midst of formulating a regularisation plan to address its financial condition.

Top Builders fell into PN17 status in June 2020, when the group’s external auditor KPMG PLT expressed doubts over the company’s ability to continue as a going concern as its current liabilities exceeded its current assets by RM21.6 million.

At the same time, the company’s equity on a consolidated basis was less than 25% of its share capital.

More recently, Top Builders’ unaudited financial results for the financial year ended June 30, 2022 (FY2022) indicated it had returned to the black with a net profit of RM150.39 million on the back of an approved scheme of arrangement. Revenue stood at RM19.63 million.

However, its unaudited financial statements for FY2022 also showed that its current liabilities exceeded its current assets by RM108.55 million.

Top Builders previously posted three consecutive financial years of net losses — RM239.1 million in FY2021, RM144.35 million in FY2019 and RM26.93 million in FY2018.

On Dec 30, 2020, the group had changed its financial year end from Dec 31 to June 30.

Trading of Top Builders shares has been suspended since Nov 8 last year pending the submission of its FY2021 annual report. The counter last traded at two sen, giving the group a market capitalisation of RM14.1 million.