Highlights:
add free Download App
premium Premium Account

Last Price Change Volume
KLSE Market Watch
Open: Day Range: Prev Close:


GRAND-FLO SOLUTION BERHAD ("GRAND-FLO" OR "THE COMPANY") -ARTICLE ENTITLED "GRAND FLO CONFIDENT OF 25pc INCREASE IN REVENUE"

GRAND-FLO SOLUTION BERHAD

Type

Reply to query
Reply to Bursa Malaysia's Query Letter - Reference IDMM-071219-42513
SubjectGRAND-FLO SOLUTION BERHAD ("GRAND-FLO" OR "THE COMPANY")
-ARTICLE ENTITLED "GRAND FLO CONFIDENT OF 25pc INCREASE IN REVENUE"

Contents :

Reference is made to Bursa Malaysia Securities Berhad’s letter dated 19 December 2007 in relation to the above article appearing in The New Straits Times, Biznews section, page 44 on 19 December 2007 in particular to the following sentences:


(i) “… Grand Flo Solution Bhd is confident of achieving a 25 per cent increase in revenue for its financial year ending December 31 2008 …”

(ii) “… the company was targeting a 50 per cent increase in revenue next year …”

In respect of the above, on behalf of Grand-Flo, Kenanga Investment Bank Berhad (formerly known as K & N Kenanga Bhd) wishes to announce the following:-

(a) In respect of (i) above, Grand-Flo wishes to clarify that based on the Company’s internal estimate, the Company expects the revenue for the financial year ending 31 December 2008 from its proposed acquisition of 55% of Labels Network Sdn Bhd (“LNSB”) (which will be the Company’s downstream division producing barcode, thermal transfer and security labels) to contribute 25% to the Company’s consolidated revenue for the same financial year.

(b) In respect of (ii) above, Grand-Flo wishes to clarify that the management of Grand-Flo believes that the revenue from LNSB (not the revenue of entire Group) will increase by 50% in the following year, 31 December 2009, due to expected strong revenue contribution in the sales of labels especially in Thailand, where Grand-Flo’s investment is expected to bear fruit as a result of its marketing synergies within the subsidiaries of the Grand-Flo group. This had been misconstrued as an increase in total Grand-Flo group revenue.

In this respect, the above statements, should not be construed as financial estimates, projection or forecast of results for the financial year ending 31 December 2008 and 2009. As such, the basis has not been reviewed or audited by the external auditors of the Company.

This announcement is dated 21 December 2007.

Query Letter Contents :

We refer to the above news article appearing in The New Straits Times, Biznews
section, page 44, Wednesday, 19 December 2007, a copy of which is enclosed for
your reference.

In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-

"...Grand Flo Solution Bhd is confident of achieving a 25 per cent increase in
revenue for its financial year ending December 31 2008 ..."

"...the company was targeting a 50 per cent increase in revenue next year..."


In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentences or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentences or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same, including the relevant bases and assumptions in
arriving at the above forecast.

Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.


Yours faithfully



TAN YEW ENG
Head, Issuers
Listing Division
Group Regulations

TYE/MZM
copy to:- Mr. Chung Tin Fah
Securities Commission (via fax)



Announcement Info

Company NameGRAND-FLO SOLUTION BERHAD (MESDAQ Market) 
Stock Name GRANFLO    
Date Announced21 Dec 2007  
CategoryGeneral Announcement
Reference NoO&-071221-57825





Close