KUALA LUMPUR (Oct 22): Aco Group Bhd’s wholly-owned subsidiary, Actgen Industry Sdn Bhd, has secured a term loan facility worth RM9.05 million from HSBC Amanah Malaysia Bhd.

The term loan facility will be utilised to finance the purchase of the remaining unexpired lease term for a period of approximately 40 years expiring on Jan 31, 2060 of a parcel of freehold industrial land in Johor Bahru, Johor, together with a building, factory and warehouse for RM10.65 million.

The remaining amount of the purchase consideration will be financed via the group’s internally-generated funds, it said in a filing to Bursa Malaysia today.

The distributor of electrical products and accessories said the term loan facilities will increase its gearing ratio from 0.64 to 0.85 times.

In a separate announcement, Aco said it has returned to the black with a profit after tax of RM1.1 million in the second quarter of its financial year 2021 (2Q FY21) compared to a loss after tax of RM1 million in 1Q FY21.

Revenue more than doubled to RM26.8 million from RM11.8 million previously.

“Our overall operations have returned to pre-Movement Control Order levels and sales orders have normalised in Q2 2021.

“The recovery momentum is encouraging, and we are marching towards our long-term strategic goals,” group managing director, Ir. Tang Pee Tee @ Tan Chang Kim said, adding that Aco will continue to explore potential synergistic investments that are within the group's financial and risk appetite.

The company also declared a first interim dividend of 0.3 sen per ordinary share for FY21.