KUALA LUMPUR: Magma Group Bhd narrowed its net loss for the financial period ended Dec 31, 2023 (FY23) to RM12.56 million versus a loss of RM15.39 million in FY22.

This was supported by better performance in the hotel segments and effective leadership under the new management team.

Revenue for the full-year dropped to 14.37 million from RM18.68 million in FY22. 

Magma also narrowed losses for the fourth quarter ended Dec 31, 2023 (Q4 2023) to RM3.19 million compared to RM5.57 million net loss in Q4 2022 due to rescission and a new purchaser with net effect of the revenue and operating profit.

However, it lost RM2.46 million in revenue compared to a gain of RM2.59 million in the corresponding quarter the previous year. 

"This year marks a significant turning point for Magma as we close a challenging chapter and turn a new leaf. The court's decision to allow the withdrawal of the lawsuit represents not just a legal victory, but a symbolic fresh start for our group. 

"Coupled with our progressive improvement in financial performance in the hospitality sector, we are more confident than ever in our path forward. 

"The recovery in hotel operations and strategic adjustments in hotel management affirm our optimistic outlook for the sector. We are poised to harness new opportunities and are committed to sustainable growth, leveraging our strengths to navigate the promising landscape of the hospitality industry," said group managing director Datuk Seri Thomas Liang Chee Fong. 

Public Bank Bhd had initiated a civil suit against Magma's subsidiary Astaka Mekar Sdn Bhd and the subsidiary's related entities over unsettled financial dues in June 2023, reflecting challenges underlying for the company back then. 

On Jan 9, the court allowed Public Bank to withdraw the lawsuit, liberating the company from the weight of past disputes and also aligned with the new leadership's direction to recalibrate Magma's focus towards strategic growth in the hospitality and property segment and exploring new business avenues.