Capital World Limited – Financial Year 2024: Key Insights and Investor Actions

Key Facts from the Report:

1. Financial Year and Date of Report:

   • The report covers the financial year ending on 30 June 2024.
   • The announcement is dated 11 October 2024.

2. Company Losses:

   • Net Loss: Capital World Limited reported a net loss of RM 79.6 million for FY2024, which was slightly improved by RM 3.1 million after adjustments from the unaudited results.
   • Total Comprehensive Loss: The total comprehensive loss for the year stood at RM 80.2 million.

3. Material Variances:

   • There were notable adjustments between the unaudited and audited financial statements, particularly a decrease in general and administrative expenses by RM 2.9 million due to share-based payment fair value adjustments.
   • The overall loss before tax improved by RM 3.1 million, reflecting the same adjustments.

4. Liabilities and Equity:

   • The company’s total current liabilities increased slightly by RM 2.5 million, primarily due to adjustments in other payables and accruals.
   • Equity was adjusted downward by RM 2.5 million after accounting for the material variances.

5. Cash Flows:

   • Net cash used in operations was RM 53.4 million.
   • There was a net cash inflow of RM 7.1 million from investing activities, primarily from the receipt of deposits for assets held for sale.
   • Cash and cash equivalents decreased by RM 40.5 million during the year, ending with RM 5.8 million as of 30 June 2024.

6. Special Action to Improve Profitability:

   • The company has undertaken a fair value adjustment of share-based payment expenses to improve its financial reporting accuracy, reducing administrative expenses.
   • No specific strategic initiatives or operational improvements were mentioned that would directly boost profitability.

Dividend Information:

• No dividends were declared or mentioned in the report.

Recommendations for Investors:

1. For Investors Currently Holding the Stock:

   • Given the continued losses and absence of dividends, current shareholders should cautiously evaluate their position. The company’s adjustments have improved its financial outlook marginally, but the significant losses and liabilities warrant close monitoring. If the losses persist or no strategic initiatives are announced to improve profitability, it may be prudent to consider reducing exposure.

2. For Investors Not Currently Holding the Stock:

   • With the company’s current financial performance showing significant losses and no immediate plans to improve profitability, new investors should avoid entering until there are clearer signs of financial stabilization or turnaround strategies. Monitoring future announcements for potential growth initiatives is advised.

Special Notes for Investors:

• The company advises shareholders to refrain from taking any action without consulting professional advisors, especially given the material variances in financial reporting and continued losses.

Disclaimer:

This analysis is based solely on the provided financial report for FY2024. It is not a financial advisory recommendation, and investors should conduct their own research or consult a licensed financial advisor before making any investment decisions.