London Biscuits plans to grow potato chips business

London Biscuits Bhd reaffirmed our confidence in the management’s growth plans and continuous efforts to manage borrowings and improve its overall balance sheet position. Growth remains focused on its potato chips line, with a new machine being added going forward. Meanwhile, its recent issuance of RM100 million medium-term notes (MTN) with maturities between three and seven years will be utilised to refinance existing bank borrowings, support working capital requirements and finance new machine capital expenditure. London Biscuits has allocated RM20 million (20%) from the issuance of RM100 million MTN as capital expenditure for a new potato chips production line that is expected to be operational in October. The new machine, which will be London Biscuits’ third potato chips line, is intended to vary the chips sizes to cater to different demands. More