Magma Group Announces Financial Results For 4Q FY2023

Company Looks Forward to Charts Course for Growth in Reviving Hospitality Sector

KUALA LUMPUR, 29 FEBRUARY 2024 – Magma Group Berhad ("Magma" or the "Company"), a dynamic investment holding group, today shared the financial achievements for the fourth quarter of the fiscal year 2023 (“4Q FY2023”) and highlighted promising prospects. The Company registered a Loss After Tax (“LAT”) of RM3.147 million in the current quarter, representing a significant improvement from the LAT of RM5.575 million in previous year corresponding quarter. The significant narrowing of losses is credited to the better performance in the hotel segments and effective leadership under the new management team.

Going forward, Magma is poised to leverage the positive momentum in the hospitality industry, fuelled by strategic initiatives by Tourism Malaysia and the anticipated surge in tourist arrivals, especially from China and Indonesia. The "Visit Perak Year 2024" and visa-free policies for certain tourists are expected to bolster the industry further.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad, remarked, "This year marks a significant turning point for Magma as we close a challenging chapter and turn a new leaf. The court's decision to allow the withdrawal of the lawsuit represents not just a legal victory, but a symbolic fresh start for our group. Coupled with our progressive improvement in financial performance in the hospitality sector, we are more confident than ever in our path forward. The recovery in hotel operations and strategic adjustments in hotel management affirm our optimistic outlook for the sector. We are poised to harness new opportunities and are committed to sustainable growth, leveraging our strengths to navigate the promising landscape of the hospitality industry."

To recap, Public Bank Berhad had initiated a civil suit against Magma’s subsidiary, Astaka Mekar Sdn. Bhd., and the subsidiary’s related entities over unsettled financial dues in June 2023, reflecting challenges underlying for the Company back then.

Following a series of legal proceedings and strategic shifts in Magma's leadership, the landscape changed significantly. On 9 January 2024, in a pivotal development, the court allowed Public Bank Berhad to withdraw the lawsuit, symbolizing a fresh start for Magma under its new management. This resolution not only liberates the Company from the weight of past disputes but also aligns with the new leadership's direction to recalibrate Magma's focus towards strategic growth in hospitality and property segment and exploring new business avenues. Magma, buoyed by this turnaround and the promise of renewed focus, is now poised to harness opportunities for sustainable development, reflecting the positive impact of its management transformation.