KUALA LUMPUR (July 31): Avillion Bhd’s (KL:AVILLION) external auditor has cast doubt on the hotel and property group's ability to continue as a going concern.

Baker Tilly Monterio Heng PLT noted that Avillion recorded a net loss of RM14.88 million at the group level and RM3.37 million at the company level for the year ended March 31, 2026 (FY2026).

Avillion also reported negative cash and cash equivalents of RM13.23 million and RM4.91 million respectively, while the company's current liabilities exceeded its current assets by RM51.08 million, the auditor noted in its report which was filed with Bursa Malaysia by Avillion on Friday.

The auditor said these conditions indicate the existence of a material uncertainty that may cast significant doubt on the group's and the company's ability to continue as a going concern.

In addition, the auditor also identified the significant balances of completed properties and properties held for development as a key audit matter.

“We focused on this area because the review of saleability and the assessment of the net realisable value of these completed properties and properties held for development by the directors are a major source of estimation uncertainty,” it explained. 

Avillion, in its filing on Friday, said it has undertaken several measures to address the issue, including rolling out new hotel packages to improve occupancy and revenue, disposing of low- or non-yielding land, intensifying sales of its completed property units and current development project and maintaining banking facilities.

The company said it will also pursue immediate land sales classified under inventories and undertake restructuring and fundraising exercises.

Avillion, whose core businesses comprise hotel and resort management, property development and travel services, expects the issue to be resolved in the subsequent financial year.

The company, which has been in the red since FY2016, posted a net loss of RM13.78 million for FY2026, widening from RM6.7 million in FY2025, as revenue fell 5.6% to RM55.18 million from RM58.48 million amid lower contributions from its hotel and travel segments.

The FY2026 results included a one-off non-cash impairment charge of RM4.9 million relating to pontoon structures damaged by Typhoon Senyar at one of the company's marina operations.

Avillion had total borrowings of RM67.42 million as at end-March 2026.

Formerly known as Reliance Pacific Bhd, Avillion's share price was last traded at four sen, valuing the company at RM57 million.