You are here
Acesian Partners issues profit warning for FY2019 results
CATALIST-LISTED Acesian Partners warned on Friday that it expects to make a S$988,000 provision related to legal proceedings in its results for FY2019 ended December. This is expected to hit its bottom line.
On Oct 14, the High Court awarded a sum of S$1.98 million to Deloitte Judicial Managers (DJM), which is the judicial manager for a wholly-owned unit of Acesian Partners, Acesian Star Partners Limited (ASPL). This sum will be paid out of the property of ASPL.
DJM had earlier applied to resign as JM for ASPL, but in May, the court ruled that DJM cannot resign, and that 50 per cent of DJM's legal fee, excluding disbursements, may be released out of ASPL's account.
ASPL had earlier made a provision for S$740,000 in December 2018. Including GST, S$920,000 would have been paid out of the property of ASPL. But with the latest court order, it now expects to make an additional provision of S$988,000.
The additional provision is not expected to affect Acesian Partners' ability to continue as going concern, the company said. However, it will likely impact the company's earnings per share and net tangible asset value per share.
Shares of Acesian Partners closed flat at S$0.011 on Friday.