VIP Gloves Limited (ASX:VIP) Reports Quarterly Update
Operational Performance
VIP Gloves Limited (‘VIP’ or ‘the Company’) reported total customer receipts of $0.99 million for the quarter ended 30 September 2024. After deducting operating expenses, the Company registered a net operating cash flow of $0.04 million. Manufacturing activities remained suspended, but management has noted an improvement in market conditions and is positioning the Company for future production.
Asset Disposal Progress
The Company is in the process of finalising the sale of a vacant land parcel, expected to yield approximately RM3 million (around $1.05 million) in net proceeds. This transaction, initiated through a Sales and Purchase Agreement on 2 May 2024, is projected to contribute working capital to support the planned resumption of manufacturing operations.
Legal Action Update
Ongoing legal proceedings against VIP since 2020 are set to continue, with the trial date at the Kuala Lumpur High Court postponed to March 2025 at the plaintiff’s request. The Company maintains its commitment to vigorously defend itself against the claims.
Future Manufacturing Prospects
Management has commenced preparations for resuming manufacturing activities, aiming to start one single former line by the end of 2024. The goal is to gradually ramp up to all six lines by the third quarter of 2025, contingent on demand for its nitrile glove products.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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