KPS ... May10

KPS’s unit Konsortium Abbas Sdn Bhd has obtained the court's nod to recover some RM70 million from Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).

The amount of RM70.14 million as at March 31, 2010, with a 8% interest per annum, is related to short payment of electricity costs and purchase of water by Syabas.

Syabas, a 70%-owned unit of Puncak Niaga Holdings Bhd, is also required to pay costs of RM20,000 to Abbas. The remainder 30% of Syabas is jointly owned by KPS and Kumpulan Darul Ehsan Bhd. Konsortium Abbas shall consult its solicitors on the next steps to be taken in relation to recovery or execution of the judgment sum and will update the exchange accordingly.

Abbas is a wholly-owned subsidiary of Titisan Modal (M) Sdn Bhd, which in turn is 55% owned by KPS. The remainder 45% is owned by well-connected Operasi Murni Sdn Bhd.

If recovered and parked in its profit and loss account, the RM70 million would boost KPS' bottom line for the year ending Dec 31, 2010.

For FY09, it posted a net profit of RM75.19 million on the back of RM300 million in revenue. Earnings per share was 15.8 sen.