KUALA LUMPUR (May 28): Ageson Bhd (KL:AGES), which entered Practice Note 17 (PN17) status back in November 2023, has secured a construction subcontract worth RM54.33 million for the development of a 40-storey service suite block in Sabah.

In a filing with Bursa Malaysia, Ageson said its indirect wholly-owned subsidiary Ageson Kensetsu Sdn Bhd had received and accepted the letter of award for the subcontract from R&C Cergas Teguh Sdn Bhd (RCCT).

The job scope includes the design and completion of earthwork and structure works for the proposed subdivision, conversion and development of the service suites for Armani Jesselton Sdn Bhd.

The subcontract, which is expected to contribute positively to the group’s future earnings, earnings per share and consolidated net assets, will be effective for a period of 36 months from the commencement date to be notified by RCCT at a later stage.

Ageson, whose external auditor flagged concerns on its receivables as well as its subsidiaries’ revenues and asset valuations, has until November to submit its regularisation plan to the relevant authorities for approval, to address its PN17 status.

In a separate Bursa filing, Ageson reported a net profit of RM2.65 million, or 0.85 sen per share, for the three-month period ended March 31, 2024. Quarterly revenue stood at RM6.94 million, primarily attributable to its construction segment.

For the 15-month period ended March 31, 2024, Ageson's net profit came in at RM3.94 million on revenue of RM36.24 million.

The company did not declare any dividend for the quarter.

Ageson previously changed its financial year end from June 30, 2022 to Dec 31, 2022, so there is no comparative financial information available for the previous year's corresponding period.

Moving forward, Ageson said it has made a foray into the retail and construction industry in order to facilitate the group's business expansion plans.

"These ventures will provide us with sustainable income and this sustainable source of income is crucial in navigating in a highly uncertain operating environment.

"Barring unforeseen circumstances, the board is cautiously optimistic that the group will perform satisfactorily in the financial year ending 2023," it added.

Shares of Ageson closed down 0.5 sen, or 4.76%, to 10 sen on Tuesday, valuing the group at RM31.17 million.