According to its filing with Bursa Malaysia yesterday, its external auditor Messrs Baker Tilly Monteiro Heng PLT noted that Avillion incurred a net loss of RM5.402 million at the group level and RM4.84 million at the company level during the financial period ended March 31, 2023 (FY2023).

The losses were recorded despite the recovery of Avillion’s hospitality, property and travel divisions after the disruptive Covid-19 pandemic.

“[This] thereby indicates the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern,” commented the auditor.

In the meantime, Avillion said it has introduced measures to navigate through the tough times, such as continuously rolling out innovative and attractive packages to improve its hotel division’s occupancy and revenue.

Other measures include selling off low or non-performing land assets, intensifying sales and marketing initiatives to clear its property inventory, and maintaining financial backing from bankers.

In FY2023, Avillion’s revenue increased by 108% to RM66.7 million from RM32.1 million in the previous year.

Losses before tax narrowed 50.9% to RM5.3 million from RM10.8 million in FY2022.

Assuming there are no unexpected events, Avillion anticipates that these issues will be resolved in the following financial year.

The group currently manages six hotels and resort properties, namely Avillion Port Dickson, Avillion Admiral Cove, Admiral Marina and Leisure Club, Avillion Cameron Highlands, AVi Pangkor, and Avillion Villa Cinta Bali in Indonesia, amongst other segmental businesses.

As at 11.15am, its share price was down by 0.5 sen or 8.33% at 5.5 sen, giving it a market capitalisation of RM62.33 million.