CEO Morning Brief

Revenue Group Says Operations Remain Unaffected Despite Boardroom Tussle

Publish date: Wed, 12 Apr 2023, 08:46 AM
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TheEdge CEO Morning Brief
Revenue Group says operations remain unaffected despite boardroom tussle

KUALA LUMPUR (April 11): Amid a tussle in the boardroom, e-payment solutions provider Revenue Group Bhd on Tuesday (April 11) gave an assurance that its operations continue unaffected.

"Delivering the highest quality of products and services to our clients remain our utmost priority," said group executive director Francis Leong Seng Wui in a statement.

"We want to reassure our stakeholders that our operations are unaffected by recent events and our clients can expect seamless and reliable payment processing services from us.

"Internally, we now have in place a new board of directors, whose collective relevant experience and knowledge provide the group with enhanced governance, leadership and overall management quality,” said Leong.

Leong was appointed as Revenue Group’s executive director in January, and has since emerged as a substantial shareholder with a 5.63% stake as at March 22.

Leong also sits on the board of Green Packet Bhd, while he resigned as Classita Holdings Bhd's executive director on Tuesday "to focus on other work commitments”.

Leong's appointment to the board of Revenue Group came after the suspension of the group's co-founders Brian Ng Shih Chiow and his younger brother Dino Ng Shih Fang from the board. The brothers also ceased to be substantial shareholders of the group.

Another Revenue Group co-founder Eddie Ng Chee Siong also ceased to be a substantial shareholder of the group and resigned as its managing director last month.

Meanwhile, Payments Network Malaysia Sdn Bhd (PayNet), the payments network and shared central infrastructure said in the statement that its collaboration with Revenue Group remains unchanged.

"Revenue Group has been and continues to be our valued partner. We have full confidence in their ability to provide reliable payment processing services to their clients,” said PayNet’s chief commercial officer Gary Yeoh.

Revenue Group suffered a net loss of RM17.61 million for the first half year ended Dec 31, 2022 (1HFY2023), after posting a second-straight quarterly loss of RM14.27 million in 2QFY2023 due to lower revenue from its business activities, coupled with higher administrative expenses and finance costs.

Quarterly revenue dropped 82.15% to RM4.9 million, from RM27.44 million in 2QFY2022, as no sales of electronic data capture terminals were recorded.

As a result, 1HFY2023 revenue shrank 44.43% to RM25.72 million, from RM46.28 million in 1HFY2022.

Revenue Group shares closed up one sen or 3.85% at 27 sen, giving the group a market capitalisation of RM130 million. Year-to-date, the stock has fallen by 60%.

Source: TheEdge - 12 Apr 2023

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