Contents :
We refer to your fax dated 21 September 2000 quoting news article entitled as above appearing in the Business Times on Thursday, 21 September 2000.
On behalf of our client, Tenco Berhad, we wish to inform the following:-
The expected 40% increase in turnover was quoted as an estimate for the current financial period ending 31 March 2001. The expected increase in turnover is attributed to the inclusion of the full year sales turnover of the two (2) new chemical companies and the improvement in the existing business.
For the financial year ended 31 March 2000, the Group has recorded a sales turnover of RM49.7 million. The two (2) new assets namely Ridgemonde Chemicals & Resins Sdn Bhd and Quality Coatings Sdn Bhd were acquired on 16 December 1999 and have contributed post-acquisition sales of RM7.7 million to the Group's overall sales turnover for the financial year ended 31 March 2000. The post-acquisition sales were based on 3.5 months of the two assets' sales performance then.
Tenco Berhad's Group sales projections submitted to the Kuala Lumpur Stock Exchange and the Securities Commission for the financial year ending 31 March 2001 is RM82.8 million which is higher than the sales turnover of RM49.7 million achieved in the preceding financial year 31 March 2000. The Group has on 23 August 2000 released its 1st quarter results where the Group achieved a sales turnover of RM20 million. As such, Tenco expects a significant increase in sales turnover for the financial year ending 2001.
Query Letter Contents :
We refer to the above article appearing in the Business Times, Companies &
Market Section, cover page, on Thursday, 21 September 2000, a copy of which is
enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence
which is reproduced as follows:
"Tenco Bhd expects turnover to rise 40 per cent in the financial year ending
March 31, 2001, with inclusion of two new chemical companies into its stable".
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 sentence after due and diligent enquiry with all the directors,
substantial 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 sentence 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 sentence or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same, including the relevant basis and
assumptions in arriving at the above forecast.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE
TAN YEW ENG
Senior Manager, Listing Operations
TYE/ASL/KRISH
Copy to: Securities Commission (via fax)
