KUALA LUMPUR (March 28): Pasukhas Group Bhd (KL:PASUKGB) has proposed a share capital reduction to wipe out up to RM115 million of the company’s accumulated losses.

As of March 7, Pasukhas had an issued share capital of RM224.23 million, consisting of 190.53 million shares, the company noted in an exchange filing on Friday.

Meanwhile, the company's accumulated losses stood at RM80.64 million at the end of Dec 31, 2024.

After the proposed share capital reduction exercise, the retained earnings of Pasukhas will turn into net earnings of RM34.17 million, according to the filing.
 
Previously, the company undertook a 10-to-1 share consolidation exercise in 2023 to improve its capital structure.

Pasukhas, which is involved in civil engineering and mechanical and electrical activities, has been in the red for the past seven financial years.

For  the six months ended Dec 31, 2024, Pasukhas posted a net loss of RM3.06 million against a net profit of RM813,000 a year ago, as its six-month revenue fell 8.1% to RM44.27 million from RM48.19 million previously.

M&A Securities is the principal adviser for the share capital reduction, which is expected to be completed in the second half of 2025.
 
Pasukhas shares closed at 14 sen on Friday, valuing the company at RM26.67 million.