Integrated Rubber Corp gets Bursa nod for regularisation plan

 Main Market-listed Integrated Rubber Corp Bhd (IRCB) has received Bursa Malaysia’s approval for its regularisation plan to help lift it out of its PN17 status.

The rubber glove manufacturer, in a filing with the stock exchange last Friday, said the regulator had approved its proposed capitalisation plan that entailed capital advances of RM44.8mil to be converted into 224 million new IRCB shares and a right to subscribe for 112 million shares granted to managing director Cheang Phoy Ken and another party, Keen Setup Sdn Bhd (KSSB).

Cheang, a former MD of delisted rubber glove producer Seal Polymer Industries Bhd, together with KSSB, had earlier advanced RM44.8mil to IRCB to help the company settle its debts.

Cheang is part of the new management seeking to turn around the fortunes of IRCB, which had slipped into losses from 2011.

In 2012, IRCB lapsed into PN17 status after its unit, Comfort Rubber Gloves Industries Sdn Bhd, defaulted on RM64.2mil worth of debt obligations.

For the first quarter ended April 30, 2014, IRCB posted a small turnaround with a net profit of RM286,000 versus a net loss of RM10.06mil for the corresponding quarter last year.

For the financial year ended Jan 31, 2014 (FY14), IRCB recorded a net loss of RM19.26mil on a revenue of RM134.70mil.

In the company’s recently released 2014 annual report, Cheang and IRCB chairman Lim Boon Huat, in a joint-statement on the review of operations, said that for FY15, the company “is determined to lay the foundations for future performance as well as fostering a culture of accountability”.

On its prospects, they said the operating environment remained moderately positive.

“The group has implemented various measures to manage rising production costs, including increasing the production capacity by a further 35 million pieces a month and further rationalising our product mix with a strong emphasis on our core products of nitrile and specialty gloves.”

Cheang secured management control of IRCB early last year when he bought a substantial stake in the company from its previous controlling shareholders amid the company’s financial difficulties. Following this, Lim was appointed to the board.

IRCB shares closed 6.1% up to 35 sen, with 1.4 million shares changing hands.