SALCON 8567 SALCON BERHAD unit files counterclaim against glove firm, demanding RM22.36 mil

 SALCON 8567 SALCON BERHAD unit files counterclaim against glove firm, demanding RM22.36 mil

KUALA LUMPUR (Dec 19): Salcon Bhd said its 51%-owned subsidiary, JR Engineering and Medical Technologies (M) Sdn Bhd (JREMT), has filed a counterclaim against Aspen Glove Sdn Bhd, demanding the payment of RM22.36 million being unutilised funds under a contract between the two parties.

The contract involves JREMT's purchase of gloves produced by Aspen in 2021.

Salcon said the counterclaim is in response to a lawsuit filed by Aspen against JREMT which it viewed as "non-meritorious".

Aspen, a subsidiary of Singapore-listed Aspen (Group) Holdings Ltd, initiated the suit after JREMT served a letter of demand on the glove firm to demand the RM22.36 million.

In the suit, Aspen is seeking a declaration that the letter of demand is invalid. It is also seeking an injunction restraining JREMT from presenting a winding up petition based on the notice of demand, pending the disposal of the suit.

In a filing with Bursa Malaysia, Salcon said: "In the event JREMT is unsuccessful in its claims against [Aspen], there would be a potential negative financial impact on the earnings per share and net assets per share of JREMT and Salcon Group for the financial year ending Dec 31, 2022.

"However, there is no financial impact on the gearing of JREMT and Salcon Group."

Salcon reported a net loss of RM3.8 million for its third quarter ended Sept 30, 2022, against a net profit of RM8.2 million a year earlier, with revenue falling to RM37.88 million from RM73.36 million. The group attributed the loss to dipping profit contributions from its divisions in construction, healthcare, property development, and trading and services.

Salcon's share price closed 0.5 sen or 3.13% lower at 15.5 sen on Monday (Dec 19), giving the group a market capitalisation of RM156.92 million.

http://www.theedgemarkets.com/article/salcon-unit-files-counterclaim-against-glove-firm-demanding-rm2236-mil