This article first appeared in The Edge Financial Daily, on February 23, 2016.

CYBERJAYA: FSBM Holdings Bhd is cautiously optimistic about returning to profitability in the current financial year ending June 30, 2016, saying it will depend on whether it clinches several projects soon.

“We are pursuing several substantive projects and hopefully it will be successful,” FSBM managing director Datuk Tan Hock San told reporters after the group’s extraordinary general meeting (EGM) yesterday.

The information technology solution service provider has been pursuing some of these projects for as long as three to four years. The potential projects are from the solution, communication and multimedia, and education segments.

For the six months ended Dec 31, 2015, FSBM posted a net loss of RM711,000 on revenue of RM2.63 million.

Tan said FSBM had  been tendering for several projects from the government for its education segment.

He said the projects from the government would be on multi-year bases involving a substantial contract sum, but declined to elaborate.

Meanwhile, FSBM and its subsidiary FSBM CTech Sdn Bhd have brought a legal action pursuant to Section 304 of the Companies Act 1965 regarding fraudulent trading against Technitium Sdn Bhd (TSB) directors Dr Azman Awang, Haliza Bidin and Mariana Ahmad Tahar,  and TSB for the recovery of debts amounting to RM8.56 million and RM31.41 million in respect of the supply of hardware and application of hardware, and provision of professional services respectively.

The trial will continue to be heard in the Kuala Lumpur High Court on March 3 and 4, and 28.

Tan is confident that the group would have reasonable prospects to win the case and recover the debt owing to it.

Earlier in the EGM, FSBM shareholders approved a resolution to reduce the group’s par value to five sen per share from 30 sen.