SILKHLD ... Oct10

SILK HOLDINGS 4QE JUL 2010 NET PROFIT DOUBLES TO RM11.5M

SILK HOLDINGS saw its 4QE Jul 2010 Net Profit rise 145% to RM11.5m, from RM4.69m same quarter a year ago, boosted by a "negative goodwill of reverse takeover".
Revenue for 4QE Jul 2010 jumped 32% to RM59.6m, from RM45.0m same quarter a year ago, while EPS climbed to 3.02 sen from the previous 2.60 sen.

The Company's Oil & Gas Division contributed RM43.6m of the Company's Revenue (73%). Its Highway Division, which contributed the remaining 27% continued to make losses.

NO DIVIDEND DECLARED
No Dividend was declared for the quarter.

FYE JUL 2010 NET PROFIT DROPS SLIGHTLY
For FYE Jul 2010, the Company's Net Profit stood at RM19.3m, in a slight drop from the RM20.8m Net Profit for FYE Jul 2009.
Revenue for FYE Jul 2010, however rose to RM223.9m, from the previous RM206.7m.

OUTLOOK FOR THE NEW YEAR AHEAD
Of its recently acquired O&G Support Services DIvision, Chairman MOHD AZLAN HASHIM was quoted as stating that it "....made a major contribution to the Group's overall financial performance....", which, he stated, had helped nullify its highway concession losses.
CASH & BANK BALANCES QUADRUPLE, BORROWINGS UP

The Company's Cash & Bank Balances as at Jul 31, 2010 rose to RM27.8m from its Aug 1, 2009 balances of RM6.8m.
Long Term Borrowings as at Jul 31, 2010 increased to RM1.19bil, from RM274.4m on Aug 1, 2009 while Trade & Other Payables rose to RM248.2m from RM67.2m on Aug 1, 2009.