Wellcall Berhad : Quarterly rpt on consolidated results for the financial period ended 30/09/2021

WELLCALL HOLDINGS BERHAD

Registration No.: 200501025213 (707346-W)

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINAL QUARTER ENDED 30 SEPTEMBER 2021

(The figures have not been audited)

		Individual Quarter	Cumulative Quarter
		3-Months Ended	12-Months Ended
		30 Sep 2021	30 Sep 2020	30 Sep 2021	30 Sep 2020
	Note	RM'000	RM'000	RM'000	RM'000
Revenue		47,502	37,274	157,016	134,920
Cost of sales		(28,860)	(21,855)	(95,197)	(83,680)
Gross profit		18,642	15,419	61,819	51,240
Selling & distribution costs		(2,166)	(971)	(6,180)	(3,256)
Administrative expenses		(3,095)	(2,254)	(11,466)	(11,032)
Other operating income		662	(273)	2,200	1,305
Profit from operations		14,043	11,921	46,373	38,257
Finance costs		(39)	(45)	(186)	(195)
Interest income		145	175	534	1,038
Share of loss of equity accounted associate,		(253)	(110)	(663)	(285)
net of tax
Profit before taxation		13,896	11,941	46,058	38,815
Tax expense		(3,851)	(2,942)	(11,903)	(9,454)
Profit for the period/Total comprehensive income
for the period		10,045	8,999	34,155	29,361
Attributable to:
Equity holders of the Company		10,045	8,999	34,155	29,361
Earnings per share (sen):
Basic	B11(a)	2.02	1.81	6.86	5.90
Diluted	B11(b)	N/A	N/A	N/A	N/A
Single tier dividend per share (sen)	B9	2.80	1.40	7.00	4.95
N/A - Not Applicable

The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the Audited Financial Statements for the year ended 30 September 2020 and the accompanying notes to the Interim Financial Report.

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WELLCALL HOLDINGS BERHAD

Registration No.: 200501025213 (707346-W)

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2021

(The figures have not been audited)

		Audited
	As At	As At
	30 Sep 2021	30 Sep 2020
	RM'000	RM'000
ASSETS
Non-current assets
Property, plant and equipment	51,729	56,894
Investment property	4,418	3,485
Capital work-in-progress	-	335
Investment in associate	3,470	4,134
Other investment	10	10
	59,627	64,858
Current assets
Inventories	20,142	13,793
Trade receivables	6,487	5,577
Other receivables, deposits & prepayments	109	81
Tax recoverable	12	6
Deposits with licensed banks	15,650	15,970
Cash and bank balances	45,940	40,109
	88,340	75,536
TOTAL ASSETS	147,967	140,394
EQUITY AND LIABILITIES
Capital and reserves
Share capital	68,836	68,836
Retained profits	58,298	52,028
TOTAL EQUITY	127,134	120,864
Non-current liability
Deferred taxation	4,954	5,174
	4,954	5,174
Current liabilities
Trade payables	5,101	5,326
Other payables & accruals	9,228	7,729
Tax payable	1,550	1,301
	15,879	14,356
TOTAL LIABILITIES	20,833	19,530
TOTAL EQUITY AND LIABILITIES	147,967	140,394
Net assets per share attributable to equity holders
of the Company (RM)	0.255	0.243

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 30 September 2020 and the accompanying notes to the Interim Financial Report.

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WELLCALL HOLDINGS BERHAD

Registration No.: 200501025213 (707346-W)

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINAL QUARTER ENDED 30 SEPTEMBER 2021

(The figures have not been audited)

	Non-Distributable	Distributable
	Share	Retained	Total
	Capital	Profits	Equity
	RM'000	RM'000	RM'000
At 1 October 2020	68,836	52,028	120,864
Total comprehensive income for the period	-	34,155	34,155
Dividends	-	(27,885)	(27,885)
At 30 September 2021	68,836	58,298	127,134
At 1 October 2019	68,836	47,563	116,399
Total comprehensive income for the period	-	29,363	29,363
Dividends	-	(24,898)	(24,898)
At 30 September 2020	68,836	52,028	120,864

Note 1:

With the Companies Act 2016 ("CA 2016") that had taken effect on 31 January 2017, the credit standing in the share premium account of RM2.443 million had been transferred to the share capital account. Pursuant to sub-section 618(3) and 618(4) of the CA 2016, the Group may exercise its right to use the credit amounts being transferred from share premium account within twenty four (24) months after the commencement of the CA 2016. The Board of Directors had approved to transfer the share premium account of RM2.443 million to the share capital account.

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 30 September 2020 and the accompanying notes to the Interim Financial Report.

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WELLCALL HOLDINGS BERHAD

Registration No.: 200501025213 (707346-W)

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FINAL QUARTER ENDED 30 SEPTEMBER 2021 (The figures have not been audited)

	12-Months Ended
	30 Sep 2021	30 Sep 2020
	RM'000	RM'000
Cash Flows from Operating Activities
Profit before taxation	46,058	38,817
Adjustments for:
Depreciation of investment property	106	76
Depreciation of property, plant and equipment	5,275	5,505
Unrealised (gain) / loss on foreign exchange	(403)	385
Gain on disposal of property, plant and equipment	(3)	(134)
Dividend income	(1)	-
Interest income	(534)	(1,038)
Share of loss of equity accounted associates, net of tax	663	285
Operating profit before working capital changes	51,161	43,896
Net change in inventories	(6,349)	1,606
Net change in receivables	(877)	3,012
Net change in payables	440	(1,907)
Cash generated from operations	44,375	46,607
Tax paid	(11,027)	(9,677)
Interest received	534	1,038
Net cash generated from operating activities	33,882	37,968
Cash Flows from Investing Activities
Proceeds from disposal of property, plant and equipment	-	197
Dividend received	1	-
Investment In Associate Company	-	(4,420)
Capital work-in-progress	335	(335)
Purchase of investment property	(1,038)	(3,561)
Purchase of property, plant and equipment	(111)	(1,334)
Net cash used in investing activities	(813)	(9,453)
Cash Flows from Financing Activities
Dividends paid	(27,885)	(24,898)
Net cash used in financing activities	(27,885)	(24,898)
Net Increase in Cash and Cash Equivalents	5,184	3,617
Effect of Exchange Rate Changes	327	(360)
Cash and Cash Equivalents at beginning of the year	56,079	52,822
Cash and Cash Equivalents at end of the period	61,590	56,079

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 30 September 2020 and the accompanying notes to the Interim Financial Report.

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WELLCALL HOLDINGS BERHAD

Registration No.: 200501025213 (707346-W)

Incorporated in Malaysia

NOTES TO THE INTERIM FINANCIAL REPORT

1. Explanatory Notes Pursuant to MFRS 134

A1. Basis of Preparation

The Interim Financial Report is unaudited and has been prepared in accordance with the reporting requirements outlined in the Malaysian Financial Reporting Standard ("MFRS") No. 134: Interim Financial Reporting issued by the Malaysian Accounting Standards Board ("MASB") and paragraph 9.22 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad ("BMSB").

The Interim Financial Report should be read in conjunction with the audited financial statements of the Group for the financial year ended 30 September 2020. These explanatory notes attached provide an explanation of events and transactions that are significant for an understanding of the changes in the financial position and performance of the Group since the financial year ended 30 September 2020.

Changes in accounting policies

The significant accounting policies adopted are consistent with those of the audited financial statements for the year ended 30 September 2020 except for the adoption of the following new, revised MFRSs, amendments to MFRS and Issues Committee ("IC") Interpretations:

Standards and Amendments Issued But Not Yet Effective

1. Amendments to MFRS 101: Presentation of Financial Statements
2. Amendments to MFRS 108: Accounting Policies, Changes in Accounting Estimates and Errors
3. Amendments to IC Interpretation 22: Foreign Currency Transactions and Advance Consideration
4. Amendments to MFRS 101: Presentation of Financial Statements - Definition of Materials
5. Amendments to MFRS 7, MFRS 9 and MFRS 139: Interest Rate Benchmark Reform
6. Amendments to MFRS 3: Business Combinations - Definition of Business
7. MFRS 17 Insurance Contracts
8. Amendments to MFRS 10: Consolidated Financail Statements and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The adoption of above standards and amendments to MFRS and IC Interpretations do not have material financial impact on the results and the financial position of the Group.

A2. Auditors' Report on Preceding Annual Financial Statements

The preceding audited financial statements for the financial year ended 30 September 2020 was not subject to any qualification.

A3. Seasonal or Cyclical Factors

The Group's operations are not materially affected by seasonal or cyclical changes during the current quarter under review.

A4. Unusual Items

There were no material items of an unusual nature and amount affecting the results of current quarter and cumulative period-to-date.

A5. Changes in Estimates

There were no changes in estimates of amounts which have a material effect in the current quarter under review.

A6. Changes in Debt and Equity Securities

Please refer to Part B Note B7.

A7. Dividend Paid

A third single tier dividend of 1.40 sen per share on 497,947,555 ordinary shares in respect of the financial year ended 30 September 2021 amounting to approximately RM6,971,266 was paid on 24 September 2021.

A8. Segmental Information

Segmental information for the Group by geographical and business segment is presented as follows:

	12-Months Ended
Geographical Segments	30 Sep 2021	30 Sep 2020
Revenue	RM'000	RM'000
Export Market
USA/Canada	37,297	32,864
Asia	33,323	23,958
Middle East	12,872	13,801
Europe	23,495	23,563
Australia/New Zealand	18,677	14,879
South America	15,233	8,326
Africa	3,910	4,113
	144,807	121,504
Local Market	12,209	13,416
	157,016	134,920
Results
Export Market	42,477	34,955
Local Market	3,581	3,860
Profit before taxation	46,058	38,815

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