Scandal fallout: SK Trims swings to Tk28cr loss in FY25, seeks court nod for delayed AGM

SK Trims & Industries, a listed garment accessories manufacturer, has reported a sharp loss for the fiscal year ended 30 June 2025, amid business disruptions, declining export orders, and the lingering impact of banking restrictions.

The company has also decided not to declare any dividend for the year.

According to a price-sensitive disclosure published today (1 June), the company's earnings per share (EPS) stood at negative Tk3.33 for FY25, compared with a positive Tk0.54 in the previous fiscal year.

Following the disclosure, the company's share price fell 0.80% to Tk12.40 on the Dhaka Stock Exchange today.

Its net asset value (NAV) per share declined to Tk12.03 from Tk15.65 a year earlier, while net operating cash flow per share (NOCFPS) dropped to negative Tk0.25 from a positive Tk0.90.

Based on the disclosed financial statements, SK Trims incurred a net loss of approximately Tk28.21 crore during the fiscal year.

The company's performance remained weak in the third quarter as well. For the January–March 2025 quarter, it reported a loss per share of Tk0.90, compared with earnings of Tk0.38 in the same period a year earlier.

For the first nine months of FY25 (July 2024–March 2025), the company posted a cumulative loss per share of Tk2.21, against earnings per share of Tk1.25 during the corresponding period of the previous fiscal year.

The company also reported a negative NOCFPS of Tk0.53 for the July 2024–March 2025 period, compared with a positive Tk0.98 in the same period a year ago. Its NAV per share stood at Tk13.11 as of 31 March 2025, down from Tk15.52 a year earlier.

SK Trims said it failed to hold its annual general meeting (AGM) within the timeframe stipulated under the Companies Act, 1994. As a result, the board has decided to seek permission from the High Court Division to convene the pending AGM. Shareholders will be notified of the date, time, and venue once the court grants approval.

Market observers believe the company's financial deterioration is closely linked to the fallout from a widely reported controversy involving former National Board of Revenue (NBR) official Motiur Rahman, popularly known as the "goat scandal."

Following allegations of corruption and illicit wealth accumulation against Motiur Rahman and members of his family, authorities froze bank accounts linked to several businesses associated with his family. SK Trims was among the companies reportedly affected by the restrictions.

The freeze severely disrupted the company's import and export operations. Several foreign buyers reportedly cancelled purchase orders, and the company was forced to suspend factory operations for a period due to its inability to conduct normal banking transactions.

Although the bank accounts were later reactivated following court intervention, the company has yet to fully recover from the operational and reputational damage sustained.

The company's financial condition began deteriorating in the second half of 2024. In the first half of FY25, revenue plunged 58%, resulting in a loss of around Tk11 crore. The company attributed the sharp decline to banking complications and the cancellation of export orders by international buyers.

Listed on the stock exchange in 2018 after raising Tk30 crore through an initial public offering (IPO), SK Trims manufactures a wide range of garment accessories, including sewing threads, elastics, poly bags, cartons, hangtags, barcodes, labels, and other packaging materials used by Bangladesh's export-oriented apparel industry.

Once regarded as a fast-growing company with a consistent profit record, SK Trims has now remained in the red for several consecutive quarters.