Transmile Group, the Malaysian freight operator involved in an accounting scandal, has reported a second-quarter net loss of $8 million. The group says in a statement to the
Revenues fell 1%, to $42.78m from 443.38m, and operating expenses were $46.51m, compared to $46.8m the same period last year. Net losses from operations were $4.25m compared to $0.54m the same period last year, it adds.
Transmile’s second quarter losses are the latest in a series of such disclosures by the company. The group, after months of delays, earlier this month issued its annual report for the 12 months to 31 December and it showed the business had a net loss of $36.05m, compared to a net loss the previous year of $105.5m.
The chairman of Transmile, Ling Liong-sik, says in the annual report that “there is also an impairment loss of $93.89m pertaining to the value of our aircraft fleet”. He also mentions the accounting scandal, disclosed in May this year, in which it was discovered that the company in 2004 and 2005 overstated its revenues.
This meant that rather than making a pre-tax profit of $24.8m in 2004 it only made $1.14m, and rather than making a pre-tax profit of $434.24m in 2005 it in fact made a pre-tax loss of $119m.
Ling says: “The past few months have been a very tumultuous period for the group. Some very serious matters have surfaced and have been reported in the press. This has, unfortunately, put the group in rather bad light, however your board has taken immediate steps to rectify this and these steps to correct the situation are still ongoing.”
Transmile is headquartered in
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Source: Flight Daily News
