KUALA LUMPUR (Jan 3): Information technology service and systems provider FSBM Holdings Bhd succumbed to heavy selling pressure today as soon as trading of its shares resumed after a 13-month suspension.

The stock plunged as much as 57.9% or 5.5 sen as investors dumped shares on news that the group has lapsed into Practice Note 17 (PN17) status.

At the noon break, FSBM shares settled at a record low of four sen with a total of 30,000 shares done, to now bring a market capitalisation of RM5.65 million.

Bursa Malaysia lifted the trading suspension of FSBM shares today after the group issued its overdue annual report for the financial year ended June 30, 2018 (FY18) on Tuesday (Dec 31, 2019), following several rounds of delay.

In its report, FSBM said the group reported a loss before tax of RM600,000 on revenue of RM1.3 million in FY18, versus a loss before tax of RM3.2 million on revenue of RM2.4 million in the preceding year.

"The historical financial performance of our group has been less favourable mainly because of, amongst others, the problem of recoverability of debts due to an altercation with a debtor who was formerly a related party, of which we have taken legal actions to recover this debt, and the stability of the revenue stream which is very much dependent on the volatility of the ICT sector.

"Our board is working to turn around our group with continued efforts to strengthen our core business activities in systems and solutions, communication and multimedia, and education," the report further read. FSBM's debt-to-equity ratio stood at 83% as at end-FY18.

On the same day, Bursa in a statement said FSBM had lapsed into PN17 status as the company's external auditor expressed a disclaimer of opinion on its FY18 audited financial statements.

Moore Stephens PLT said it was issuing a disclaimer of opinion on the group's FY18 audited accounts as the auditor could not obtain sufficient appropriate evidence to provide a basis for an audit opinion.

FSBM has been required to submit a regularisation plan to the relevant regulatory authorities on or before Dec 29, 2020.

The board of directors of FSBM said the group is presently looking into formulating a regularisation plan to address its financial condition.

Read more:
FSBM slips into PN17 status after auditor expressed disclaimer of opinion on accounts
FSBM faces suspension if annual report not submitted tomorrow