GFM Services : Quarterly Report Fourth Quarter 2022

GFM SERVICES BERHAD

[Registration No. 201301003302 (1033141-H)]

(Incorporated in Malaysia)

Year 2022

Quarterly Announcement

For the Fourth Quarter Ended 31 December 2022

GFM SERVICES BERHAD [Registration No. 201301003302 (1033141-H)]

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The Board of Directors of GFM Services Berhad ("GFM" or the "Company") ("Board") is pleased to announce the following unaudited consolidated results for the quarter and financial period ended ("FPE") 31 December 2022.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2022

		Individual quarter	Cumulative period
		Current year		Preceding year	Current year	Preceding year
		quarter		quarter	to-date		to-date
		31/12/2022	(1)	31/12/2021	31/12/2022	(1)	31/12/2021
	Note	RM'000		RM'000	RM'000		RM'000
Revenue	A9	44,177		32,980	141,220		124,124
Cost of sales		(27,572)		(22,791)	(85,950)		(79,143)
Gross profit		16,605		10,189	55,270		44,981
Other income		1,434		986	2,351		2,004
Administrative expenses		(1,923)		(1,616)	(6,890)		(6,692)
Other operating expenses		(1,769)		(702)	(889)		(790)
Profits from operations		14,347		8,857	49,842		39,503
Finance costs		(5,325)		(5,089)	(20,307)		(21,074)
Share of results of an associate, net of tax		19		5	19		5
Profit before tax	B12	9,041		3,773	29,554		18,434
Tax expense	B5	(3,644)		(1,567)	(11,269)		(8,424)
Profit/Total comprehensive income for the period	5,397		2,206	18,285		10,010
Other comprehensive income
Revaluation surplus of properties		-		-	-		-
Total comprehensive income for the period		5,397		2,206	18,285		10,010
Profit for the period attributable to:
Equity holders of the parent		5,397		2,206	18,285		10,010
		5,397		2,206	18,285		10,010
Total comprehensive income for the
period attributable to:
Equity holders of the parent		5,397		2,206	18,285		10,010
		5,397		2,206	18,285		10,010
Earnings per share (sen)
- Basic(2)		0.92		0.41	3.13		1.87
- Diluted(3)
Dividends per share (sen)		N/A		N/A	N/A		N/A

Notes:

1. The Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the audited financial statements for the financial year ended ("FYE") 31 December 2021 and the accompanying explanatory notes attached to the interim financial report.
2. Basic earnings per share for the individual quarter and financial year are calculated based on the Company's weighted average share capital during the financial quarter/year.
3. Diluted earnings per share of the Company for the individual quarter and financial year are calculated based on the profit for the financial quarter/year attributable to owners of the Company and its subsidiaries ("GFM Group" or "Group") and the weighted average number of ordinary shares outstanding during the financial quarter/year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

N/A Not applicable

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GFM SERVICES BERHAD [Registration No. 201301003302 (1033141-H)]

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_______
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31
		Unaudited as
		at		Audited as at
		31/12/2022	(1)	31/12/2021
	Note	RM'000		RM'000
ASSETS
Non-current assets
Property, plant and equipment		12,233		13,052
Investment property		6,174		6,174
Intangible assets		21,985		23,202
Investment in associate		88		69
Operating financial assets		292,008		302,766
Other investments		17,585		16,685
Deferred tax assets		64		20
Total non-current assets		350,137		361,968
Current assets
Tax assets		3,308		5,342
Trade receivables		20,527		16,044
Operating financial assets		31,080		32,308
Other receivables, deposits & prepayments		27,056		17,169
Cash and cash equivalents		98,933		79,286
Total current assets		180,904		150,149
Total assets		531,041		512,117
EQUITY AND LIABILITIES
Capital and reserves
Share capital		103,123		82,537
Share premium
Retained earnings		107,013		89,723
Share option reserve and share grant reserve		401		401
Fair value reserve		(2,415)		(2,415)
Reorganisation deficit		(45,265)		(45,265)
Revaluation reserve		-		-
Total equity		162,857		124,981
Non-current liabilities
Borrowings	B8	257,496		278,617
Deferred tax liabilities		46,725		45,005
Total non-current liabilities		304,221		323,622
Current liabilities
Trade payables		6,142		7,226
Other payables and accruals		26,777		25,018
Borrowings	B8	31,000		31,144
Tax payable		44		126
Total current liabilities		63,963		63,514
Total liabilities		368,184		387,136
Total equity and liabilities		531,041		512,117
Net assets per share attributable to equity holders of the Company (R	0.28		0.24

1. The Unaudited Condensed Statement of Financial Position should be read in conjunction with the audited financial statements for the FYE 31 December 2021 and the accompanying explanatory notes attached to the interim financial report.

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GFM SERVICES BERHAD [Registration No. 201301003302 (1033141-H)]

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR FINANCIAL PERIOD ENDED 31 DECEMBER 2022
	|-------------------------------------- Attributable to owners of the Company ------------------------------------|
			Fair value
			reserve of
			financial	Share	Share
	Share		assets at	option	grant	Revaluation	Reorganisation	Retained	Total
	capital		FVOCI(2)	reserve	reserve	reserve	deficit	earnings	equity
	RM'000		RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
Balance as of 1 January 2022	82,537		(2,415)	370	31	-	(45,265)	89,723	124,981
Comprehensive income
Profit for the financial period	-		-	-	-	-	-	18,285	18,285
Transactions with owners
Issue of ordinary shares
-Pursuant to private placement	20,584		-	-	-	-	-	-	20,584
-Pursuant to vesting of
share grants	-				-	-			-
-Pursuant to conversion of	2		-	-	-	-	-	-	2
warrants
-Revaluation of property, plant
and equipment	-		-	-	-	-	-	-	-
Dividends paid on shares	-		-	-	-	-	-	(995)	(995)
Balance as of 31 December 2022	103,123		(2,415)	370	31	-	(45,265)	107,013	162,857
Balance as of 1 January 2021	76,023		(2,415)	370	31	-	(45,265)	83,277	112,021
Comprehensive income
Profit for the financial period	-		-	-	-	-	-	10,009	10,009
Drawdown of investment	-			-	-	-	-	-	-
Transactions with owners
Private placement	6,514		-	-	-	-	-	-	6,514
Issue of ordinary shares		-	-
-Pursuant to private placement	-			-	-	-	-	-	-
-Pursuant to vesting of	-			-	-	-	-	-	-
share grants
Dividends paid on shares	-		-	-	-	-	-	(3,563)	(3,563)
Balance as of 31 December 2021	82,537		(2,415)	370	31	-	(45,265)	89,723	124,981

Notes:

1. The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2021 and the accompanying explanatory notes attached to the interim financial report.

• Denotes < RM1,000

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GFM SERVICES BERHAD [Registration No. 201301003302 (1033141-H)]

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UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS STATEMENT FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2022

	Year-to-date ended
	31/12/2022	31/12/2021
	RM'000	RM'000
CASH FLOWS FOR OPERATING ACTIVITIES
Profit before tax	29,554	18,433
Adjustment for:
Amortisation of intangible assets	1,216	1,216
(Reversal)/Impairment loss on trade receivables	(772)	267
Bad debts written off	-	-
Depreciation of property, plant and equipment	1,505	1,474
Gain on disposal of property, plant and equipment	-	(70)
Interest expense	20,118	21,074
Interest income	(1,794)	(888)
Interest income on operating financial asset	(25,814)	(33,423)
Share of results of an associate	(19)	(5)
	23,994	8,078
Movements in working capital:
Increase in:
Trade and other receivables	(13,598)	(1,308)
Increase in:
Trade and other payables	674	4,261
Decrease in:
Operating financial assets	37,800	44,294
Contract asset/(liabilities)	-	1,918
Cash Generated From Operations	48,870	57,243
Bad debts recovered	-	-
Income tax paid	(7,642)	(8,387)
Interest paid	(20,118)	(20,188)
Interest received	1,794	888
Net Cash From Operating Activities	22,904	29,556
CASH FLOWS USED IN INVESTING ACTIVITIES
Redeemable Convertible Preference Shares (RCPS)	(900)	(4,100)
Change of escrow account, finance service reserve account, liquidity reserve
account, revenue account and disbursement account	2,014	1,895
Change in pledge deposits	(1,754)	(1,784)
Purchase of property, plant and equipment	(665)	(498)
Proceeds from disposal of property, plant and equipment	-	212
Net Cash Used In Investing Activities	(1,304)	(4,275)
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from issuance of shares	20,586	6,470
Repayment of finance lease payables	(100)	-
Repayment to bank factoring	-	(564)
Repayment of term loans	(22,346)	(24,905)
Dividend paid	(995)	(3,563)
Drawdown of Revolving Credit	2,000	4,028
Net Cash Used In Financing Activities	(855)	(18,534)
NET INCREASE IN CASH AND CASH EQUIVALENTS	20,746	6,747
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	33,138	25,814
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD	53,884	32,561
Cash and cash equivalents comprise:
Cash and bank balances	48,201	46,725
Fixed deposits with a licensed bank	50,732	32,560
	98,933	79,285
Less: Bank overdraft	(1,147)	(1,985)
Deposits pledged as securities	(10,148)	(8,393)
Escrow account, finance service reserve account, liquidity reserve
account, revenue account and disbursement account	(33,754)	(36,346)
	53,884	32,561

Notes:

1. The Unaudited Condensed Consolidated Cash Flow Statement should be read in conjunction with the audited financial statements for the FYE 31 December 2021 and the accompanying explanatory notes attached to the interim financial report.

• Denotes < RM1,000

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