Bion swings to FY profit, warns of Covid-19 hit in 2020

Environmental engineering and renewable energy solutions provider Bion said on Monday that it looked set to swing to a full-year profit thanks to a series of new business wins but warned the Covid-19 lockdown measures had hurt it going into 2020.

For the year ended 31 December 2019, Bion said pre-tax profits were projected to be approximately MYR 710,000 (£131,400), a marked turnaround when compared to the loss of MYR 13.65m (£2.52m) reported a year earlier, while revenues were expected to improve to roughly MYR 24.0m (£4.44m) from MYR 1.92m (£355,480).

However, following the outbreak of Covid-19, the Government of Malaysia implemented a Movement Control Order which required Bion to cease construction activities at various project sites as supplies, materials and equipment were not transportable or obtainable.

Although the AIM-listed company has commenced operations "in a phased manner", interstate border control has yet to be lifted and so, while employees were permitted to travel to its project sites, the movement of resources, materials and equipment to sites or offices was "progressing slowly".

"While it remains too early to predict the full impact of Covid-19 on the company's results for 2020, based on the actions described above and that Bion is starting to resume activity, the board is confident that the company will have sufficient cash to remain viable during this period."

As of 1125 BST, Bion shares had slumped 20% to 2.00p.