Review Of Mieco's Earnings

Blogged previously: A Good Long Look At Mieco Chipboard Again

Mieco Chipboard announced its earnings and it did not register a loss. In fact, it registered a profit of 3.489 million. A turnaround in the making? Time to have a look again, yes?

Company said the following in its notes.

• Group revenue in the final quarter of 2009 fell 28% to RM47.8 million from RM66.1 million a year ago due to lower selling prices and sales volume of particleboard and related products, though partially mitigated by favourable sales mix.
  Although sales were lower, the Group registered a pre-tax profit of RM2.2 million as compared to a loss of RM25.1 million a year ago mainly due to reduced raw material prices and operational costs. In addition, the Group incurred RM7.2 million allowance for doubtful debts and RM5.9 million loss on disposal of plant and equipment in the last quarter of 2008.

Doubtful debt allowance of 7.2 million....

Back in Nov 2009, I noted the following:

• Nov 2009, yesterday. Mieco announced its earnings. It lost 1.574 million. Cash is now only 6.221 million. Total loans is now 177.792 million.

Let's look at the cash balances.

Cash is now only 5.137 million and loans is 178.058 million.

How?