Navigating Choppy Waters: A Deep Dive into Ivory Properties Group Berhad’s Q4 FY2025 Results
Greetings, fellow investors and market enthusiasts! Today, we’re unboxing the latest financial report from Ivory Properties Group Berhad (IPGB) for its fourth quarter and full financial year ended 31 March 2025. This report offers a fascinating, albeit complex, look into a company grappling with significant headwinds while also showing glimpses of resilience. While revenue figures present a stark picture, a closer look reveals a strategic turnaround in profitability for the full year, primarily driven by a substantial one-off gain. However, the company’s ongoing PN17 status and a web of material litigations remind us that the path ahead remains challenging. Let’s delve into the numbers and understand what’s truly happening behind the headlines.
Core Data Highlights: A Tale of Two Periods
Quarterly Performance: Q4 FY2025 vs. Q4 FY2024
The fourth quarter of FY2025 saw a dramatic shift in IPGB’s top line. Revenue took a significant hit, largely due to the absence of a major joint development agreement that boosted figures in the prior year.
Current Quarter (Q4 FY2025)
Revenue: RM9.5 million
Net Loss After Tax: RM32.7 million
Previous Year Corresponding Quarter (Q4 FY2024)
Revenue: RM72.9 million
Net Loss After Tax: RM45.4 million
Despite the substantial 87% decrease in revenue, it’s noteworthy that the net loss after tax actually narrowed by 28%. This improvement wasn’t driven by core operational growth, but rather by the reversal of impairment on property, plant, and equipment, and a reversal of inventory write-downs in the current quarter. In contrast, the previous year’s larger loss was impacted by significant write-downs of inventories and impairment losses on financial instruments.
Full-Year Performance: FY2025 vs. FY2024
Looking at the full financial year, the revenue trend mirrors the quarterly decline, but the bottom line presents a surprising turnaround.
Current Year (FY2025)
Total Revenue: RM23.9 million
Profit Before Tax: RM8.1 million
Basic Earnings Per Share: 1.55 sen
Previous Financial Year (FY2024)
Total Revenue: RM81.5 million
Loss Before Tax: RM67.1 million
Basic Earnings Per Share: (13.55 sen)
While total revenue for FY2025 decreased by 71% compared to the previous financial year, the Group achieved a remarkable profit before tax of RM8.1 million, a significant turnaround from the RM67.1 million loss in FY2024. This positive shift was largely attributable to a substantial one-off gain of RM58.7 million from the liquidation of a subsidiary, coupled with the aforementioned reversals of impairments and write-downs.
Quarter-on-Quarter Performance: Q4 FY2025 vs. Q3 FY2025
Comparing the current quarter to the immediate preceding quarter highlights some immediate operational challenges.
Current Quarter (Q4 FY2025)
Revenue: RM9.5 million
Net Loss After Tax: RM32.7 million
Immediate Preceding Quarter (Q3 FY2025)
Revenue: RM11.0 million
Net Loss After Tax: RM0.2 million
The Group’s total revenue declined by 14% quarter-on-quarter, primarily due to lower sales from completed properties. This also led to a significant increase in net loss after tax, largely driven by impairment losses of RM12.7 million on prepayments and RM20.7 million on a financial guarantee.
Financial Status: A Snapshot
The Group’s financial position as at 31 March 2025 shows the impact of ongoing operations and strategic adjustments.
| Item | As at 31.03.2025 (RM’000) | As at 31.03.2024 (RM’000) |
|---|---|---|
| Total Assets | 236,524 | 339,089 |
| Total Liabilities | 197,388 | 301,195 |
| Total Equity | 39,136 | 37,894 |
| Net Assets Per Share (RM) | 0.08 | 0.08 |
| Cash and Bank Balances | 1,740 | 1,713 |
| Loans and Borrowings (Current) | 57,411 | 83,112 |
Total assets and liabilities have decreased, reflecting ongoing operational adjustments and asset disposals. While total equity saw a slight increase, the company remains classified under PN17, indicating that its current liabilities still exceed current assets, and its financial health remains a key area of focus for its regularisation plan.
Cash flow from operating activities generated RM24.4 million for the year, a positive sign, though this was partially offset by cash used in investing activities, including a significant net cash outflow of RM20.3 million from the liquidation of a subsidiary. Net cash used in financing activities also decreased, mainly due to lower net repayment of term loans.
Risk and Prospect Analysis: Navigating the Path Ahead
IPGB’s journey is currently defined by its ongoing efforts to address its PN17 status and navigate a complex legal landscape. The company was classified as an affected listed issuer under Practice Note 17 (PN17) on 29 July 2022, requiring it to submit a regularisation plan to Bursa Malaysia Securities Berhad. This remains the paramount focus for the company.
The auditors have expressed a disclaimer of opinion on material uncertainty related to going concern in their report for the financial year ended 31 March 2024. This highlights critical challenges such as reported net losses, current liabilities exceeding current assets, defaults on term loan facilities, and ongoing legal proceedings.
Key Challenges & Strategies:
- PN17 Regularisation Plan: The company is actively formulating its regularisation plan and has sought extensions from Bursa Securities. Its ability to continue as a going concern is highly dependent on the successful and timely implementation of this plan.
- Material Litigations: IPGB is embroiled in several significant legal battles.
- The Conlay Construction Sdn Bhd case involves disputes over land acquisition and a counterclaim for substantial sums (RM42.67 million paid + RM13.39 million liquidated damages + RM5.75 million in damages).
- Multiple cases with Bank Islam Malaysia Berhad highlight defaults on corporate guarantees and direct loans, with summary judgments obtained against IPGB for significant amounts (e.g., RM19.8 million and RM14.0 million claims for subsidiary guarantees, and RM10.5 million and RM7.3 million for direct loans).
- Project Suspension & Liabilities: The suspension of the Penang Times Square Phase 3 (PTS3) development project continues to pose challenges, including uncertainty regarding liquidated ascertained damages (LAD) and the recoverability of contract assets.
- Asset Disposals: The company is pursuing specific transactions to unlock cash and raise necessary funds. A notable event post-quarter-end is the disposal of “THE BIRCH HOUSE” commercial building for RM18 million, which remains conditional.
The Board does not anticipate a significant turnaround in the Company’s position until a stable income stream is established through the ongoing regularisation plan. The focus remains on strategic transactions to generate cash and sustain operations while navigating the complexities of its financial and legal obligations.
Summary and
Ivory Properties Group Berhad’s Q4 FY2025 report paints a picture of a company in transition, marked by significant challenges but also strategic maneuvers to stabilize its financial position. While the full-year profit turnaround is a positive highlight, it’s largely driven by a one-off gain rather than core operational improvements. The substantial decline in revenue, coupled with ongoing legal battles and the critical PN17 status, underscore the significant hurdles that lie ahead.
The company’s efforts to formulate a regularisation plan and dispose of assets are crucial steps. However, the success of these initiatives and the resolution of the various litigations will be key determinants of its future viability. Investors should pay close attention to the progress of the regularisation plan and the outcomes of the legal proceedings, as these will directly impact the company’s ability to achieve a sustainable financial footing.
Key points of risk to monitor include:
- The successful and timely implementation of the PN17 regularisation plan.
- The outcomes of the material litigations, particularly those related to corporate guarantees and loan defaults, which could significantly impact the company’s liabilities.
- The ability to generate consistent, stable income streams from ongoing operations, rather than relying on one-off gains.
- The recovery and classification of recorded assets, especially those tied to suspended projects like PTS3.
Final Thoughts and What’s Next?
From a professional perspective, IPGB’s report highlights the severe impact of project delays and market challenges on property developers, especially those with significant debt and legacy issues. The one-off gain is a temporary reprieve, but the underlying operational and financial structure still requires substantial restructuring. The company’s ability to secure financing, resolve its legal entanglements, and execute its regularisation plan will be paramount.
Do you think Ivory Properties Group Berhad can successfully navigate its PN17 status and legal challenges to emerge stronger? Share your thoughts in the comments below! Let’s continue to monitor this intriguing development closely.
